AstraZeneca’s $39 billion takeover of U.S.-based Alexion Pharmaceuticals examined by U.K. regulator

The U.K.’s Competition and Markets Authority said on Tuesday it was opening a consultation on the $39 billion planned takeover of U.S. drug company Alexion Pharmaceuticals, to determine whether it would adversely affect competition.

  • The watchdog is trying to assess whether the merger “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
  • The CMA said in a release that it was opening a consultation and inviting comments with the aim of reaching a preliminary decision by a tentative deadline of July 1.
  • U.K.–Swedish pharmaceuticals group AstraZeneca
    one of the largest manufacturers of COVID-19 vaccines, announced in December an agreement to acquire Alexion

    and its portfolio of rare-disease drugs, such as best-selling Soliris, in an attempt at diversification from its main cancer drug business.
  • The deal, which would be financed by a $25 billion capital increase once it is concluded, was approved by AstraZeneca’s shareholders two weeks ago. It has already been approved by U.S. and Canadian authorities.

Read: U.K. trade with the European Union plunges in first quarter after Brexit

The outlook. The CMA decision is a procedural, quasi-routine announcement that the consultation of “interested parties” is formally open. The crucial decision will come in two months’ time, when the watchdog will announce whether it deems the merger worthy of a so-called Phase 2 investigation, a more in-depth probe of its competition impact.

Read: AstraZeneca’s Covid-19 Vaccine Approved for Emergency Use in Japan

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News