Published: Wed, May 09, 2018
Worldwide | By Lisa Hogan

Shire agrees terms of £46bn Takeda takeover offer

Shire agrees terms of £46bn Takeda takeover offer

Takeda Pharmaceutical Co. of Japan has finalized an agreement to buy Shire PLC, the second-biggest biotech employer in MA, for $62 billion in the largest-ever worldwide takeover by a Japanese company.

Shareholders of the two companies will split the holdings of the combined group, which will have its headquarters in Japan and be listed on the Tokyo Stock Exchange.

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

Shares in the FTSE 100 listed company rose by 5% n early trading but remain well below the offer price, indicating that Shire shareholders still have reservations about the deal.

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.

After waging a lengthy campaign to win over the board of Dublin-based Shire, Takeda announced Tuesday that they had an agreement. The deal came on the last day for Takeda to make a firm bid.

Susan Kilsby, chairwoman of Shire, said the takeover of her company - which is best known as the maker of Adderall, a treatment for ADHD, but has become one of the world's biggest makers of medicines for rare diseases - is in the best interest of shareholders. The company expects US$1.4 billion in overall savings by the third year.

Takeda announced the news today, May 8. Takeda's main areas of focus moving forward will be neuroscience, oncology, gastroenterology and vaccines.

Takeda said the deal will save about US$600 million in duplicated research and development costs.

Takeda, founded in Osaka in 1781, wants Shire, a specialist in the treatment of rare conditions, to help it expand globally - especially in the USA - as it faces down the prospect of weaker drug prices in its home market.

Takeda is the largest pharmaceutical in Japan. Takeda's offer excludes Shire's oncology business-which Shire on April 16 agreed to sell to Servier for $2.4 billion. Last year, the company expanded its footprint in the USA oncology market with the US$4.7 billion purchase of Ariad Pharmaceuticals.

Takeda said the integrated company will be headquartered in Japan, listed in both Tokyo and NY, will expand its R&D presence in the Boston, US, area, and have major regional locations in Japan, Singapore, Switzerland and the US.

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