Takeda is actually in talks with Shire after its $61 billion bid was rejected

hristophe Weber, president in addition to chief executive officer of Takeda Pharmaceutical

Yuriko Nakao | Bloomberg | Getty Images

hristophe Weber, president in addition to chief executive officer of Takeda Pharmaceutical

Japan’s Takeda Pharmaceutical is actually in negotiations with Shire after producing a third takeover bid worth around $61 billion of which was rejected by the London-listed rare diseases drugmaker.

Reuters first reported of which Takeda had made a cash-in addition to-stock takeover offer of 46.50 pounds a share, prompting Takeda to issue a statement confirming the move. The latest offer was made on April 12.

“Takeda was subsequently notified of which the board of Shire had rejected its proposal. Discussions between the parties regarding a potential offer are ongoing,” the company said on Thursday.

Shire confirmed of which This specific had received three conditional proposals coming from Takeda.

The announcement comes ahead of an April 25 deadline for Japan’s biggest drugmaker to make a firm offer or walk away coming from the FTSE 100 company, after This specific said last month This specific was considering a bid.

Shares in Shire were up 3 percent at 38.64 pounds in London.

Buying Shire would likely be transformational for Takeda however would likely be a big financial stretch, since the company is actually worth in excess of $10 billion more than the Japanese group. Shire also had debt of around $19 billion as of the end of 2017.

Takeda’s rejected bid comprised 17.75 pounds in cash, which would likely be paid in U.S. dollars, in addition to 28.75 pounds worth of fresh Takeda shares. of which would likely value Shire at approximately 43 billion pounds, or $61 billion, Thomson Reuters data showed.

A successful acquisition of Shire would likely be the largest ever overseas acquisition by a Japanese company in addition to propel Takeda, led by Frenchman Christophe Weber, into the top ranks of global drugmakers. This specific would likely significantly expand its presence from the all-important U.S. market.

Shire is actually best known for selling treatments for rare diseases in addition to attention deficit disorder. Earlier This specific week This specific struck a deal to sell unlisted French group Servier its cancer drugs for $2.4 billion.

The drugs industry has seen a surge in deal-producing This specific year as large players look for promising assets to improve their pipelines, however a Takeda-Shire transaction would likely be by far the biggest yet.

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