EU approves Illumina's plan to divest cancer test maker Grail (updated)

Illumina

12/04/2024 11:21

(Adds the European Commission comments, details)
    By Foo Yun Chee
       BRUSSELS, April 12 (Reuters) - 
    U.S. gene sequencing company Illumina's  ILMN.O  plan to
divest cancer diagnostic test maker Grail  GRAL.O  has received
the green light from EU antitrust regulators which blocked the
deal two years ago.
  
        Illumina jumped the gun in 2021 when it completed the
$7.1-billion acquisition before first securing EU regulatory
approval.
  
        That prompted the European Commission, which acts as the
competition enforcer in the 27-country European Union, to order
the company to keep Grail separate from Illumina.
  
        Its subsequent investigation of the matter resulted in a
432 million euro fine for Illumina and an order to sell Grail.
  
        The EU competition watchdog again vetoed the deal in
2022, saying it would stifle innovation and reduce choice in the
emerging market for blood-based early cancer detection tests.
  
        "The divestment plan foresees that Illumina can select
the appropriate divestment method (either via a trade sale or a
capital markets transaction)," the Commission said in a
statement.
  
        It said the sale would restore Grail's independence and
allow it to operate it as a viable and competitive business.
  
        U.S. antitrust regulators had also opposed the deal.
  

 (Writing by Nette Nöstlinger; editing by Charlotte Van
Campenhout and Jason Neely)
 ((Annette.Noestlinger@thomsonreuters.com;))