The European Commission gave approval to the $62bn (€54.4) takeover subject to the divestment of a Shire drug in development.
The company previously proposed the divestment of Shire’s drug candidate SHP647, for the treatment of inflammatory bowel disease (IBD). Takeda’s highest-selling drug, Entyvio (vedolizumab), is also for the treatment of IBD.
Regulators in the US, Japan, China, and Brazil have already approved this acquisition.
Takeda agreed to buy Shire with a bid of 46% cash and 54% stock meaning Shire shareholders would own half of the merged company. Shire initially rejected Takeda’s proposal.
An investor vote is set for next month, needing two-thirds of its shareholders to support the deal in order for it to be approved. The company previously stated that debt burden is a concern for Takeda and its shareholders, as the company would be reliant on a $30.9bn bridge loan to finance the acquisition.
London-listed Shire’s shares rose 3% recently. The shares hit the highest share level since Takeda first announced its interest in acquiring the company.
