Illumina-Grail $8B Saga Ends After It Battles Regulators For 3 Years
Portfolio Pulse from Vandana Singh
Illumina Inc (NASDAQ:ILMN) has agreed to divest Grail Inc after nearly three years of regulatory battles following their $8 billion acquisition. The divestiture is in response to antitrust concerns from the U.S. Federal Trade Commission and the European Commission, with a deadline for terms to be finalized by Q2 2024. Illumina has decided not to appeal the U.S. Fifth Circuit Court's decision mandating the divestiture. The company was fined €432 million by the EU for proceeding with the acquisition without approval. Illumina's shares rose 1.46% to $128.95 following the news.
December 18, 2023 | 4:55 pm
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Illumina Inc has agreed to divest Grail Inc to comply with antitrust regulators, ending a three-year battle. The company will not appeal the Fifth Circuit Court's decision and was previously fined by the EU. Shares increased following the announcement.
The agreement to divest Grail may relieve some of the regulatory pressure on Illumina and provide a clearer path forward, which can be viewed positively by investors. The slight increase in share price reflects initial market optimism. However, the long-term impact will depend on the terms of the divestiture and the company's strategic direction post-divestment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100