Takeda To Buy Shire For $62.2 Billion

Takeda To Buy Shire For $62.2 Billion

As per the reports of the company on Tuesday, Takeda, a famous Japanese drug maker company has agreed to purchase Shire for $62.4 billion in both cash as well as stock. Shire shareholders will also receive 0.839 new Takeda shares or 1.678 Takeda American Depository Shares, shares of a foreign-based company that can be purchased on a US stock exchange.

Takeda and Shire said they expect the deal to close in the first half of next year, with Takeda's shareholders owning about half of the combined operation.

"Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda", Weber said in the statement.

More news: Cardiff promoted to the EPL, promotion record for Warnock

For the deal between Takeda and Shire to proceed, 75% of Shire's voting shareholders must support the transaction.

Yet buying Shire is a stretch for the much smaller Takeda, which will borrow $30.85 billion from J.P. Morgan Chase, Sumitomo Mitsui, MUFG Bank and others to fund the takeover. Up to three Shire directors will join the Takeda board.

Shire had said last month that it was "willing to recommend" the proposal - the fifth offer in a series of improved bids - subject to certain conditions being met.

More news: Jerusalem mayor posts U.S. embassy sign, thanks Trump in tweet

Weber became Takeda's first non-Japanese CEO in 2015 and has been hunting for acquisitions to make the company more global and reduce its exposure to a mature Japanese pharmaceutical market. Takeda is valued at about $34 billion and makes nearly half of its sales in Asia, and about a third in the U.S. Among its top sellers are Entyvio, used to treat ulcerative colitis, and cancer drug Leuprorelin. Acquiring the Shire will add another wing to the Takeda Pharma which is rare-disease treatments, or "orphan drugs".

Tokyo-listed Takeda's shares, however, climbed nearly four per cent to ¥4,638 (£31.50). "Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies".

"We can now go after targets and diseases that we couldn't previously", said Plump, who oversees Takeda's research and development operations, which are based in MA. Takeda's offer excludes Shire's oncology business-which Shire on April 16 agreed to sell to Servier for $2.4 billion. The combined company will be headquartered in Japan, but Takeda said it will boost its research and development presence in the Boston area, where both companies have sites.

More news: Torino Hold Napoli For Juventus

Related Articles