Boost for Illumina as court adviser rejects EU merger powers (updated)

Illumina

21/03/2024 09:44

(Adds details)
    By Foo Yun Chee
       BRUSSELS, March 21 (Reuters) - U.S. gene sequencing
company Illumina  ILMN.O  on Thursday won the backing of an
adviser to Europe's top court who said EU antitrust regulators
do not have the power to scrutinise its $7.1 billion bid for
Grail  GRAL.O  nor block it.
    The European Commission in 2021 asserted a rarely used power
called Article 22 to assess the deal even though it fell short
of the EU merger revenue threshold, following requests from
several European Union countries. 
    It subsequently vetoed the deal and ordered Illumina to
unwind the transaction which the company had completed before
securing regulatory approval, leading Illumina to file a number
of challenges on various grounds.
    A lower tribunal in 2022 sided with the EU competition
enforcer, prompting Illumina to take its case to the
Luxembourg-based Court of Justice of the European Union (CJEU). 
    CJEU Advocate General Nicholas Emiliou said judges should
set aside the General Court judgment because it had erred in its
interpretation of Article 22 and that they should annul
Commission decisions on referral request.
    "In one fell swoop, the Commission would gain the power to
review almost any concentration, occurring anywhere in the
world, regardless of undertakings’ turnover and presence in the
European Union and the value of the transaction, and at any
moment in time, including well after the completion of the
merger," Emiliou said. 
    Judges follow such non-binding opinions in the majority of
cases.
    The case is C-625/22 P - Grail v Commission and Illumina.

 (Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta and Mark
Potter)
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