Japan's Biggest Ever Deal: Takeda Buys Shire For $62 Billion

May 09, 2018, 01:13
Japan's Biggest Ever Deal: Takeda Buys Shire For $62 Billion

If the deal closes, Shire shareholders will own around half of the combined business.

Although the deal must get the support of 75 percent of Shire's voting shareholders, some of whom do not want to hold Takeda paper, Weber told reporters he believed investors would back the transaction.

The combined company plans to complement Takeda's areas of therapeutic focus-namely oncology, gastroenterology, and neuroscience therapeutic areas plus vaccines-with Shire's strengths in rare diseases and other areas.

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

The boards of both firms have finally agreed on the terms of the deal, settling on an offer of £49.01 per Shire share.

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.

The takeover, reached after Shire rejected four of Takeda's prior offers, gives Takeda the wider global reach it has sought under CEO Christophe Weber, and adds to its portfolio drugs like Shire's blockbuster ADHD medicine Vyvanse.

A few weeks ago, Takeda confirmed that it was trying to buy out Shire, a specialist in treating rare diseases, by noting that its most recent proposal had been spurned.

The deal is expected to result in $1.4bn annual cost savings and will prompt a "review of the functions to be undertaken" at Shire's headquarters in Dublin as well as possible "consolidation" of operations in the US, Singapore and Switzerland.

Founded in 1781 in Osaka, Japan, Takeda is a global, R&D-driven pharmaceutical with around 30,000 employees globally and operating in 70 countries and regions. "Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies".

Takeda, which has seen its market value slide to US$34 billion since announcing its interest, is taking over a much bigger rival. The Tokyo-listed pharmaceutical company's stock dropped 1.7% to 4,460 yen on Monday, a third straight fall session.

Takeda is the largest pharmaceutical in Japan.

The combined company will be headquartered in Japan, with an expanded presence in the USA -where Shire and Takeda both maintain significant R&D operations that have grown in recent years-and "major" regional locations in Japan and the US, as well as in Singapore and Switzerland.

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