Illumina Versus European Commission: Legal Battle Over Grail Acquisition Reaches Critical Stage
Portfolio Pulse from Vandana Singh
Illumina Inc (NASDAQ:ILMN) is in a legal dispute with the European Commission over its $7.1 billion acquisition of Grail Inc. The Commission is using Article 22 to scrutinize the deal, which allows it to review acquisitions of smaller rivals by larger companies, even if they don't meet the EU merger revenue threshold. Illumina's challenge to the EU's decision to block the deal was unsuccessful in a lower tribunal last year. The Court of Justice of the European Union (CJEU) will receive a non-binding opinion on March 21, with a ruling expected in about six months. Illumina has also submitted a draft registration statement for the potential divestiture of GRAIL to the SEC under an order from the European Commission. Illumina's stock (ILMN) saw a slight increase of 0.19% to $117.86.
December 12, 2023 | 7:12 pm
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Illumina Inc is engaged in a critical legal battle with the European Commission over its acquisition of Grail Inc, which could affect its future operations and market strategy. The company has also taken steps towards a potential divestiture of GRAIL as directed by the European Commission.
The ongoing legal dispute with the European Commission presents uncertainty for Illumina, which could lead to volatility in the stock price. However, the slight increase in share price suggests that the market has not reacted strongly to this news. The potential divestiture indicates proactive compliance measures by Illumina, which may mitigate negative impacts. The final outcome will depend on the CJEU's ruling, which is still several months away.
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