EU to order Illumina to divest Grail after blocking takeover By Reuters
Economy 7 minutes ago (Sep 06, 2022 12:26)
© Reuters. FILE PHOTO: A building on the campus at the world headquarters of Illumina is shown in San Diego, California, U.S., September 1, 2021. REUTERS/Mike Blake/File Photo
By Foo Yun Chee
BRUSSELS (Reuters) -EU antitrust regulators plan to order U.S. life sciences firm Illumina to divest biotechnology company Grail after an EU veto of the $7.1 billion acquisition over concerns it would hurt competition and stifle innovation.
The European Commission, which acts as the competition enforcer in the 27-country bloc, said on Tuesday that Illumina’s remedies did not adequately address its concerns, confirming a Reuters story in July.
Illumina completed the deal in August last year ahead of EU regulatory approval, resulting in an EU order to keep Grail separate and appoint independent managers to run the company until the investigation’s conclusion.
“With this transaction, Illumina would have an incentive to cut off Grail’s rivals from accessing its technology, or otherwise disadvantage them,” EU antitrust chief Margrethe Vestager said in a statement.
“It is vital to preserve competition between early cancer detection test developers at this critical stage of development. As Illumina did not put forward remedies that would have solved our concerns, we prohibited the merger,” she said.
Illumina said it would challenge the EU veto.
“To prepare for the anticipated divestment order from the European Commission in the coming months, the company will begin reviewing strategic alternatives for GRAIL in the event the divestiture is not stayed pending Illumina’s appeal,” it said in a statement.
The EU watchdog said Illumina offered to give a licence for its NGS (next generation sequencing) patents to some NGS suppliers, with provisions in agreements valid until 2033. It also offered a three-year patent truce with Chinese rival BGI Genomics.
Illumina is already in talks with the Commission to divest Grail, people familiar with the matter told Reuters on Monday.
Illumina scored a victory last week when a U.S. administrative judge backed its challenge against a lawsuit by the Federal Trade Commission (FTC) against the deal. The FTC has said it will appeal.
Separately, Illumina faces an EU fine of as much as 10% of its annual global turnover for jumping the gun and has set aside $453 million for this.
The deal would have given Illumina access to Grail’s flagship Galleri blood test used to diagnose cancers at early stages when the disease is easier to treat.
EU to order Illumina to divest Grail after blocking takeover
By Essi Lehto and Anne Kauranen HELSINKI (Reuters) -Finland’s Fortum said on Tuesday it had signed a bridge financing arrangement with Finnish government investment company…
By Geoffrey Smith
Investing.com — World energy prices come under pressure as the European Union gets serious about reducing demand and fixing its energy market shortcomings. The…
LONDON (Reuters) – Liz Truss becomes Britain’s new prime minister on Tuesday, facing inflation at 40-year highs, the biggest squeeze on household living standards in decades and a…
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.