Takeda Pharmaceutical Co. of Japan has finalized an agreement to buy Shire PLC, the second-biggest biotech employer in MA, for $62 billion in the largest-ever worldwide takeover by a Japanese company.
A fortnight after Takeda and Shire reached a preliminary deal and agreed to conduct due diligence on both sides, a cash and shares agreement has been reached which values the FTSE 100 company at £49 a share.
The acquisition will create a combined company to be half owned by Shire shareholders upon completion of the deal, which is subject to approval by shareholders of both companies and expected to close in the first half of 2019. The companies completed a $32bn merger the following year, with Hattrell leading the firm's team.
The deal will catapult Takeda to eighth rank among the top 10 in the global pharmaceutical industry.
"Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies".
Takeda has however obtained a $31 billion bridge loan to help finance the deal, a fact that had unnerved some investors before the deal's announcement.
Takeda's board members have approved the details of the acquisition plan that the company will formally propose to Shire, according to sources. In response, the Irish firm announced on April 25 that it had told Takeda that Shire's board was willing to recommend the offer to its shareholders.
Although based in Ireland, Shire has most of its operations in Lexington and Cambridge and more than 3,000 workers in MA. It is the largest takeover deal by a Japanese company.
The takeover, reached after Shire rejected four of Takeda's prior offers, gives Takeda the wider global reach it has sought under CEO Christophe Weber, and adds to its portfolio drugs like Shire's blockbuster ADHD medicine Vyvanse.
The deal will provide Takeda more access to the US market.
Takeda expects substantial cost synergies of at least $1.4 billion.
Takeda aims to maintain a net debt to EBITDA ratio of 2 times over the medium term, which the company described as a period of between three to five years. Takeda's largest previous purchase was a US$13.7 billion takeover of Nycomed in 2011. Past year it bought Ariad Pharmaceuticals of Cambridge, Massachusetts.