Illumina Slapped With Over €400M In Fines: European Commission Penalizes Company For Hasty Grail Deal
Portfolio Pulse from Vandana Singh
The European Commission has fined Illumina Inc (NASDAQ:ILMN) and Grail Inc €432 million and €1,000, respectively, for implementing their proposed merger before approval, in breach of EU merger control rules. Illumina has already reserved $453 million for a possible maximum fine. The company may be commanded to divest the deal with Grail later this year. Illumina plans to appeal the fine. This case is the first where the commission used new powers to scrutinize takeovers of startups with little or no revenue.
July 12, 2023 | 12:20 pm
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Illumina has been fined €432 million by the European Commission for breaching merger control rules. The company may be commanded to divest the deal with Grail, which could impact its future growth and financial stability.
The fine imposed on Illumina by the European Commission is a significant financial burden. Furthermore, the potential command to divest the deal with Grail could disrupt Illumina's strategic plans and future growth. This could negatively impact the company's stock price in the short term.
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