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Irish Pharma Firm Shire To Be Acquired By Japanese Company Takeda For £46bn

Irish Pharma Firm Shire To Be Acquired By Japanese Company Takeda For £46bn
In a deal that took months of negotiations and a once dead end, Irish drugmaker Shire will now be bought over by Japan's Takeda Pharmaceutical in a deal that is worth £46 billion.
Since March this year, there had been five offers for UK-listed Shire made by Takeda. The final agreement ends that period of discussions and debates. 
This deal would mark the largest takeover by a Japanese company in a foreign land ever, if the deal is approved by shareholders of both sides.
The deal marks a step by the Japanese company to fulfill its plans to turn itself into a global pharmaceutical company.
The aim of the purchase of Shire by the Japanese firm is to bolster its portfolio of drugs and therapies related to cancer, stomach and brain ailments.
Takeda chief executive Christophe Weber said: "Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda.
"Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies."
$30.33 in cash for each share they own would be given to shareholders of Shire in addition to granting of shares in the Japanese company. a combination of the two makes the total offer worth about £49 a share.
Takeda’s board would also be joined by up to three Shire directors.
Shire chairwoman Susan Kilsby said: "We firmly believe that this combination recognises the strong growth potential of our leading products and innovative pipeline and is in the best interests of our shareholders, our patients and the communities we serve."
Earlier a cash and stock offer of £46.50 a share by Takeda was rejected by board of Shire in April this year. but the two companies never stopped negotiations as Takeda refurbished its offer.
The strategy of refusal by Shire was to refuse offers so that the bids from Takeda could be increased – ultimately benefitting the shareholders of the U.K. listed company.
Botox maker Allergan was also in the race top acquire Shire. However, it was around this time that the company receded from the takeover attempts that left Takeda as the lone suitor for Shire.
The first offer by Takeda was worth £41billion on 29 March. Takeda made another offer for Shire of £43 billion and offered ownership of half o eth new entity to the shareholders of Shire shareholders.
But that offer was put down by the board at Shire who claimed that it "significantly undervalued the company, its growth prospects and pipeline".

Christopher J. Mitchell

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