Talk about a healthy sized deal.
Takeda said it has offered $30.33 in cash for each outstanding Shire share, as well as either 0.839 in new Takeda Shares or 1.678 in existing Takeda ADSs. The deal values Shire at £49.01 per share, a 27.1% premium to their Friday closing level, or £46 billion ($62.4 billion), Takeda said. Shire shareholders will hold 50% of the combined group, the companies said in a statement, which will be listed on the Tokyo Stock Exchange with ADSs placed on the NYSE.
"Since its inception, Takeda has transformed into an agile, R&D-driven global pharmaceutical company that is well-positioned to deliver innovative and transformative care to patients around the world," said Takeda CEO Christophe Weber. "Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda."
"Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies," he added in a statement. "We are looking forward to the benefits this combination will bring to patients worldwide, the opportunities it will bring for our employees and the returns it will deliver for our shareholders."
Shire plc shares were marked 3.8% higher at 3,998 pence each in London trading Tuesday, extending their gain since Takeda first expressed interest in Shire in late March to around 30%.
Takeda, Japan's biggest drugmaker by sales, confirmed its interesting in Shire in late March and said a takeover would bolster its core therapeutic areas of oncology, gastroenterology and neuroscience and align the company with market opportunities in the U.S. It also noted value propositions in Shire's global rare disease franchise.
Shire, with group headquarters in Dublin, U.S. operational headquarters in Lexington, Mass., and international operational headquarters in Zug, Switzerland, confirmed March 28 that it has not received a formal approach from Takeda even as press speculation had tied the two groups together.