Takeda secures Shire bid for $62.11bn

By Melissa Fassbender

- Last updated on GMT

(Image: Getty/mthipsorn)
(Image: Getty/mthipsorn)
Takeda has acquired Shire for approximately $62.11bn (£46bn) to create a Japan-headquartered biopharmaceutical company with a robust pipeline and expanded geographical footprint.

The deal is expected to see Takeda become the only pharmaceutical company listed on both the Tokyo Stock Exchange in Japan and the NYSE in the US. The company will continue to have its primary listing in Japan where the newly-combined company will the headquartered.

"We believe the combination will create a leading global biopharmaceutical company driven by innovative and world-class R&D with the scale to drive future development,"​ a Shire spokesperson told us in a statement.

According to Takeda, the transaction brings together companies’ “complementary positions”​ in gastroenterology (GI) and neuroscience and positions the new entity to lead in rare diseases and plasma-derived therapies “to complement strength in oncology and focused efforts in vaccines.”

Additionally, the combined company will gain increased exposure in the US and anticipates expansion of its R&D presence in the Boston area. It will also have “major”​ regional locations in Japan, Singapore, Switzerland, and the U.S.

Takeda currently has more than 180 partnerships on which the combined group is expected to build to “further enrich the pipeline.”

Following completion of the transaction, Takeda shareholders will hold approximately 50% of the combined group. The transaction – approved by the boards of both companies – is expected to close in the first half of 2019.

By the end of the third fiscal year following the acquisition's completion, Takeda expects recurring pre-tax cost synergies for the combined group to reach at least $1.4bn annually.

In a statement, Christophe Weber, president and chief executive officer of Takeda, said: “Shire’s highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda.”

Susan Kilsby, chairman of Shire, added that by combining with Takeda, “Shire helps create an even stronger biopharmaceutical company, with a robust R&D pipeline and expanded global footprint.”​ 

The road to acquisition

The deal did not come without its difficulties, as we previously reported, Shire initially rejected Takeda's proposals​ saying the offers undervalued its pipeline and growth potential. However, in the days following Shire said the board would be willing to recommend the latest offer, which came in 4% above the prior cash offer​.

Also briefly in the mix, Allergan announced ​that it was in the early stages of considering a possible acquisition offer for Shire – a move that was quickly quashed​.

The deal also follows Shire's divestiture of its cancer business for $2.4bn​. The company noted at the time that the oncology branch did not align with its long-term business strategy. Proceeds from the transaction were said to increase the company's "optionality,"​ Shire CEO Flemming Ornskov said.

Takeda first confirmed interest​ in a takeover in March of this year, at which time Shire's share price jumped 21%.

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