Acquisitions · Pharmaceuticals
Takeda buys Shire for about $62 billion, Japan's largest overseas acquisition
- Buyer
- Takeda Pharmaceutical (Tokyo)
- Target
- Shire, Dublin, Ireland
- Value
- About £46B (about $62B)
- Status
- Agreed on May 8, 2018; completed on January 8, 2019.
- Date
- 2018-05-08
Takeda Pharmaceutical agreed to buy Shire, a rare-disease drugmaker headquartered in Ireland and incorporated in Jersey, for about £46 billion (about $62 billion). Shire operates heavily in the US, with its US operations hub in Lexington, Massachusetts. The deal was the largest overseas acquisition by a Japanese company.
Why it matters
Shire's rare-disease and plasma-derived drugs made Takeda a much larger company and greatly increased its sales in the US, the world's biggest drug market.
Terms and financing
Each Shire share was exchanged for $30.33 in cash plus 0.839 new Takeda shares. To fund the cash part, Takeda arranged a $30.85 billion bridge loan from Japanese and international banks. Shareholders approved the deal on December 5, 2018, with 89.1% of Takeda's votes and 99.8% of Shire's in favor.
The combined company
After closing, the combined company had annual revenue of more than $30 billion and sold its medicines in about 80 countries and regions. It focused on oncology, gastroenterology, neuroscience and rare diseases, with further investment in plasma-derived therapies and vaccines. Takeda later sold the dry-eye drug Xiidra to Novartis.
Sources
Kakehashi M&A News home
