Ashurst has joined Slaughter and May and Linklaters among the line-up of law firms advising on the £46bn takeover of Irish drug company Shire by Japan's Takeda Pharmaceutical. Shareholders in the United Kingdom group will hold about 50 percent in the enlarged drugmaker following completion of the deal, which is slated for the first half of next year.
The Japanese company capped a drawn-out pursuit by agreeing to pay Shire £49.01 a share in cash and stock, based on Takeda's closing share price on April 23, according to a statement on Tuesday. According to MarketBeat, Shire now has a consensus "buy" rating and an average price target of 4,585.75p.
The combination merges Shire's portfolio of treatments for rare diseases with Takeda's for cancer, gastroenterology and neuroscience.
Initial reports of a pending M&A deal involving Shire PLC (ADR) (NASDAQ: SHPG) dates back to late March, when The Wall Street Journal reported that Japan-based Takeda Pharmaceuticals was interested in the Ireland-based pharmaceutical giant.
If the deal is backed by shareholders, it will be the largest overseas takeover by a Japanese company to date.
The Japanese company's global footprint will be significantly bolstered by the addition of Shire's assets, particularly those in the lucrative U.S. market.
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Analysts say Takeda is eager to acquire Shire in order to boost its global presence and get hold of its portfolio of rare disease medicines, which have high profit margins. Takeda has revealed it expects pre-tax cost synergies to reach $1.4bn after three years, mostly stemming from the integration of redundant infrastructure within the two companies.
Shire has a strong pipeline of potential drugs in development that complement's Takeda's work, she said.
The deal also increases Takeda's exposure to the United States, the world's biggest pharmaceutical market.
Its earlier acquisitions include Ariad Pharmaceuticals in 2017, Nycomed in 2011 and Millennium Pharmaceuticals in 2008 and early this year, it proposed to buy TiGenix, which is expected to close by July this year. Past year it bought Ariad Pharmaceuticals of Cambridge, Massachusetts.
The acquisition is expected to become effective in the first half of 2019, Takeda said.