The UK-listed drugmaker Shire, known for its ADHD hyperactivity drug Adderall, has recommended a £46bn takeover deal by Japan’s biggest pharma company, Takeda.
If approved by investors, it would be one of the biggest pharmaceuticals deals ever, ranking behind Pfizer’s $112bn takeover of Warner Lambert in 2000.
The stock and cash offer values Shire at £49 a share, about £5 more than Takeda’s initial bid. After rebuffing several offers, the Shire board said “it would be willing to recommend the revised proposal to Shire shareholders subject to satisfactory resolution of the other terms of the possible offer, including completion of reciprocal due diligence by Shire on Takeda”.
The FTSE 100 company set a new deadline of 8 May for the negotiations to be concluded, although this could be extended further.
Shire shareholders would own about half of the combined company, whose shares would be listed in Japan and the US.
Atsushi Seki, pharma analyst at UBS, said: “With Shire board’s willingness to recommend, Shire’s acquisition becomes realistic. That said, to complete the acquisition, there are still several hurdles, including no other bidder(s) emerging and a special resolution at a shareholder meeting (two-thirds supportive vote required), and the long journey to completion now begins.”
Britain’s biggest drugmaker GSK ruled itself out of bidding on Wednesday. The US company Allergan, which makes Botox, dropped out of the running earlier this month.
Shire shares in London closed down 2.8% to £38.20, well below the offer price, suggesting scepticism in the market about the deal. Takeda shares tumbled more than 7% on the Tokyo stock exchange, reflecting fears that a deal of this size could put too much pressure on the Japanese firm’s finances.
A deal would give Takeda Shire’s lucrative rare diseases portfolio and propel the Japanese firm, led by Frenchman Christophe Weber, into the top ranks of global drugmakers.
Shire, founded above a shop in Basingstoke, Hampshire, in 1986, is best known for its ADHD drug Adderall but its focus in recent years has been on rare diseases.
The company is based in Dublin for tax purposes but run from Boston. It has scaled back its presence in the UK and most of its operations are in the US.
