China opportunities lure foreign asset managers

Source: Xinhua | 2018-07-11

TAKEDA Pharmaceutical Co Ltd yesterday said it has received US approval for its US$62 billion acquisition of London-listed Shire Plc, taking the Japanese firm one step closer to its goal of becoming a global top 10 drugmaker.

Takeda said in a press release it received unconditional clearance from the United States Federal Trade Commission.

The Tokyo-listed firm is still awaiting approval from regulators in China, the European Union and elsewhere, as well from shareholders of both parties.

Chief Executive Christophe Weber has been working to persuade investors about the deal’s cost-saving merits. However, concerns of the financial burden the combined company will carry have weighed heavily on Takeda’s stock price which closed flat yesterday ahead of the announcement. The stock is down 16 percent since the firm first said at the end of March it was eying bidding for Shire.

The drugmaker expects the deal to close in the first half of 2019.