Japan's biggest ever deal: Takeda buys Shire for $62 billion

Japan's Takeda announces £46 bn firm offer for Shire

Japan's Takeda announces £46 bn firm offer for Shire

The agreement offers $30.33 in cash and either 0.839 new Takeda shares or 1.678 Takeda American depositary receipts.

Shareholders of Takeda Pharmaceutical Co. and Shire Plc will each own about 50 percent of the merged company. The companies completed a $32bn merger the following year, with Hattrell leading the firm's team. Takeda's existing shareholders are facing a hard time as their stake will be reduced to half.

And the acquisition would catapult Takeda, which has few late-stage experimental drugs in its own pipeline, into the ranks of the world's biggest pharmaceutical companies.

"Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies", he said.

Shire has a strong pipeline of potential drugs in development that complement's Takeda's work, she said.

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

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.

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Although based in Ireland, Shire has most of its operations in Lexington and Cambridge and more than 3,000 workers in MA.

Takeda, which has seen its market value slide to US$34 billion since announcing its interest, is taking over a much bigger rival.

The deal increases Takeda's exposure to the U.S., the world's biggest pharmaceutical market.

Japan share market finished session higher on Tuesday, 08 May 2018, with investors encouraged by Wall Street overnight rallies and Japan's Takeda surging on reports that the drugmaker would make a formal offer to buy Ireland's Shire.

The companies eventually expect to realize about $1.4 billion in annual cost savings from combining, the majority of which will come from reducing duplicative functions in sales and marketing, Takeda said. Its net profit is about three times more than Takeda's. Shire shares traded up 3.7%. Takeda's largest previous purchase was a US$13.7 billion takeover of Nycomed in 2011.

Hattrell also represented Shire on its $5.2bn acquisition of United States company NPS Pharmaceuticals in 2015 and when it was the subject of an attempted takeover by U.S. drugmaker AbbVie in 2014. A year ago it bought Ariad Pharmaceuticals of Cambridge, Mass. Takeda is valued at about $34 billion.

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