Will Illumina Give Up Cancer Test Maker Grail? Mulls $8B Acquisition's Fate Amid Antitrust Pressure

Illumina Inc ILMN reportedly said it will divest its controversial acquisition of Grail as expeditiously as possible if the life sciences company loses either of the final appeals in U.S. or European courts.

Illumina completed its $7.1 billion takeover of Grail in August 2021, despite opposition from European and U.S. regulators, and the EU fined approximately €432 million.

In 2016, Illumina had spun off Grail and retained a 12% stake. The company also said that if it wins both cases, Reuters noted, it will reassess Grail's assets, which might result in integrating or divesting part or the entire unit.

Reuters reported that Illumina is expected to get an order from EU antitrust later this week to sell Grail, which develops blood-based early cancer detection tests.

The deal was opposed on concerns that the takeover would stifle competition in the U.S. market.

The U.S. Federal Trade Commission (FTC) has also ordered Illumina to divest Grail, which Illumina appealed against in June.

In August, Illumina disclosed in an SEC filing that the Securities and Exchange Commission is the latest government agency investigating the Grail acquisition.

In quarterly 10Q filing, Illumina said that it received a letter in July 2023 informing it of the investigation and a request for "documents and communications primarily related to Illumina's acquisition of Grail and certain statements and disclosures concerning Grail, its products, and its acquisition, and related to the conduct and compensation of certain members of Illumina and Grail management, among other things."

Price Action: ILMN shares closed at $137.92 on Wednesday.