Takeda Pharmaceutical acquires London-listed Shire for $62 bn

09 May, 2018, 06:09 | Author: Terri Saunders
  • Takeda Pharma offers $62 billion in takeover of Britain's Shire

The acquisition will create a combined company to be half owned by Shire shareholders upon completion of the deal, which is subject to approval by shareholders of both companies and expected to close in the first half of 2019. That is about $66.22 per share, made up of $30.33 per share in cash and 0.839 shares of Takeda stock.

In a separate statement, Takeda said it would fund the deal with a bridge loan facility of almost US$31 billion.

Takeda's financial advisers included Evercore, JPMorgan Chase and Nomura Holdings, while Shire received financial advice from Citigroup, Morgan Stanley and Goldman Sachs Group.

Shire has offered Takeda a large presence in the US and an expertise in the rare diseses.

Takeda had raised its bids over a six-week chase and agreed on a 60% premium to Shire's closing price on March 27, before Takeda disclosed its interest. 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. It will be listed on the Tokyo stock exchange.

Takeda has been conducting due diligence for the past two weeks, but Shire had rejected its offer four times on price disagreement and also because it wanted more in cash and less in stock. While some of them do not want to hold Takeda paper, Weber told reporters he believed investors would back the transaction.

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Jobs will go, with the group's combined 52,000 workforce likely to be reduced by 6-7 percent.

The deal will catapult Takeda to eighth rank among the top 10 in the global pharmaceutical industry.

Weber became Takeda's first non-Japanese CEO in 2015 and has been hunting for acquisitions to make the company more global and reduce its exposure to a mature Japanese pharmaceutical market.

Takeda will become the only pharma company with dual listings in Tokyo and NY. A Shire takeover brings Takeda treatments for rare diseases such as hemophilia - a field that's luring a growing number of drugmakers that can charge more for unique life-saving drugs than for routine treatment.

However, Takeda's research and development hub will stay in Boston, she said. Another 20 percent will be in Japan and about 30 percent will be in other countries, she said. Takeda's main areas of focus moving forward will be neuroscience, oncology, gastroenterology and vaccines. Takeda's largest previous purchase was a $13.7 billion takeover of Nycomed in 2011.

Last year, Shire leased space in the former Bank of Ireland headquarters, on Baggot Street in Dublin and said it would boost staff numbers here to 300.

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