Shire: Phase I conditional clearance by the European Commission

Shire (NASDAQ:SHPG) announced the publication of a scheme document relating to the recommended cash and share offer being made by Takeda Pharmaceutical (TSE:4502) for the entire issued and to be issued share capital of Shire.

As quoted in the press release:

At the time of publication of the Scheme Document, the Acquisition remained subject to the European Commission taking a decision, on terms reasonably satisfactory to Takeda, that it would not initiate proceedings under Article 6(1)(c) of Council Regulation (EC) 139/2004 in relation to the Acquisition or any matter arising from or relating to the Acquisition.

Shire is pleased to announce that, following discussions between Shire and Takeda with the European Commission in relation to the future potential overlap in the area of inflammatory bowel disease between Takeda’s marketed product Entyvio (vedolizumab) and Shire’s pipeline compound SHP647, the European Commission has decided not to initiate proceedings under Article 6(1)(c) of Council Regulation (EC) 139/2004 and has granted a Phase I conditional clearance for the Acquisition, subject to Shire and Takeda entering into commitments to divest SHP647 and certain associated rights. Accordingly, Takeda has confirmed today that the EU Merger Control Condition has now been satisfied. The divestment of SHP647 and certain associated rights is not a condition to the completion of the Acquisition.

Click here to read the full press release.