Corrected: UPDATE 1-Australian treasurer weighs blocking Mayne Pharma's $437 million takeover

Mayne Pharma

31/10/2025 03:12

Corrects an earlier version of the story to say Mayne Pharma stock hit its lowest since August 2024, not 2014, in paragraph 4

Oct 31 (Reuters) - Australia's Mayne Pharma MYX.AX said on Friday it had received a letter from its potential acquirer, Cosette, stating that the country's treasurer was seeking to block the A$672 million ($436.67 million) buyout of the company.

Cosette has been trying to terminate its offer, after saying in May that it was reviewing the deal because of a "material adverse change" in Mayne's performance.

In late May, the stock had fallen to A$4.31 in its weakest trading session since March 2009, when Mayne disclosed Cosette's review of the offer.

Shares in Mayne Pharma fell as much as 38.6% to A$3.81 in their weakest intraday performance ever. The stock hit its lowest level since August 21, 2024.

The letter stated the treasurer indicated that his "preliminary view is that the proposed acquisition would be contrary to the national interest" because it would negatively impact the Australian economy and community.

Cosette or the office of the treasurer did not immediately respond to a Reuters request for comment.

($1 = 1.5389 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Anil D'Silva and Rashmi Aich)

 ((Rishav.Chatterjee@thomsonreuters.com))