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J&J tries to assuage EU concerns over Actelion purchase
Posted on Thursday, 18 May 2017 14:57
US medical device, pharmaceutical and consumer goods maker Johnson & Johnson (J&J) has issued concessions in a bid to satisfy the European Union (EU) and get it to wave through the firm’s planned acquisition of Swiss biotechnology player Actelion.

The exact nature of these compromises has not been disclosed as yet.

As a consequence, the EU has extended its review period, which was due to expire on 24th May, until 12th June.

Reuters picked up on the news and said the body will now look for feedback from consumers and other market players and will subsequently make a decision on whether or not to approve the deal.

The EU could decide to investigate the proposed transaction, a process which would last four months.

J&J agreed to acquire Actelion, via its Swiss subsidiary Janssen Holding, in late January.

Under the terms of the offer it would pay USD 280.00 per item of stock, thereby valuing the company at USD 30.17 billion and representing a 23.2 per cent premium over the target’s close of CHF 227.40 on 25th January, the last trading day prior to the deal being announced.

Completion is currently scheduled for the second quarter of 2017.

The deal has already been given the seal of approval by the Swiss Takeover Commission, the Japan Fair Trade Commission and the Israeli Antitrust Authority.

Actelion describes itself as a leading biopharmaceutical company active in the discovery, development and commercialisation of drugs for diseases with unmet medical needs.

The company’s operations span more than 30 countries and it claims to be a leader in the science and medicine of pulmonary arterial hypertension.

Actelion’s stock closed at EUR 275.75 on 17th May, down from EUR 278.00 on the previous day.

© Zephus Ltd