Shire agrees terms of £46bn Takeda takeover offer

Shire agrees terms of £46bn Takeda takeover offer

In its announcement Tuesday, Takeda noted that the combined company would have a significantly increased presence in the USA, the largest pharmaceuticals market in the world.

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". And prospects looked increasingly dim after news of Takeda's interest sent its shares south and Shire's soaring. Takeda also would get increased exposure to the USA, the world's biggest pharmaceutical market and where Shire generates most of its revenue. Shire's US headquarters is in MA. Takeda generates only 30% of its sales from the region.

The Japanese drug maker increased its bid for Shire multiple times over the past month.

Based on regulations in Britain's stock exchange, where Shire is now listed, the two drugmakers have extended the deadline for announcing whether they will formally propose the acquisition from 5 p.m. on April 25 to 5 p.m. on Tuesday London time.

The agreement ends a takeover battle that had seen Takeda make five offers for UK-listed Shire since late March. In the offer that finally won over the target, Takeda agreed to pay £49.01, or just over $66, per share - $30.33 in cash and 0.839 Takeda shares for each Shire share. Takeda shareholders will have to agree, though, and the deal hasn't been popular with investors so far.

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Takeda said the deal will save about US$600 million in duplicated research and development costs. The firm expects to general annual pretax cost synergies of $1.4 billion by the end of the third year.

CYBG Plc, the parent company of Clydesdale Bank and Yorkshire Bank, has made a preliminary approach for Virgin Money Holdings which values the lender supported by Richard Branson at £1.6 billion.

Shire's shares climbed more than three per cent in early trading.

Hattrell also represented Shire on its $5.2bn acquisition of United States company NPS Pharmaceuticals in 2015 and when it was the subject of an attempted takeover by U.S. drugmaker AbbVie in 2014. Takeda's largest previous purchase was a $13.7bn takeover of Nycomed in 2011.

In a separate statement today, Takeda said it will continue to focus on growing its oncology portfolio, which along with its hematology holdings expanded a year ago when Takeda acquired Ariad Pharmaceuticals for $5.2 billion.

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