European Commission Says No To Illumina-Grail Deal - What's Next?

  • The European Commission has prohibited Illumina Inc's ILMN acquisition of GRAIL. 
  • The company is reviewing the Commission's order and intends to appeal the decision. 
  • The company said the "merger of Illumina and GRAIL would usher in a transformational phase in the detection and treatment of cancer by facilitating equal and affordable access to the life-saving early cancer detection Galleri test."
  • The EC decision follows last week's U.S. Federal Trade Commission judge ruling in favor of Illumina's acquisition of GRAIL.
  • Reuters reported that Illumina is in talks with European Union antitrust regulators to divest Grail ahead of an expected EU veto next week of its $8 billion acquisition.
  • Illumina completed its takeover of Grail in August last year without waiting for the EU green light.
  • The Commission is scheduled to decide on the takeover by Sept. 12.
  • The report mentioned that Illumina had offered royalty-free global licenses for some patents to rivals and a three-year patent truce with Chinese rival BGI in Europe to address EU antitrust worries.
  • Price Action: ILMN shares are up 4.04% at $204.00 during the premarket session on the last check Tuesday.
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