Grifols says takeover talks with Brookfield terminated

The board of Spanish plasma-based medicines producer Grifols (MCE: GRF) has announced the termination of discussions with Brookfield Capital Partners (UK) regarding a potential acquisition of Grifols shares.

Brookfield’s decision to withdraw after indicating last week that it could submit a 6.45 billion euros ($6.82) bid for Grifols piles further pressure on the leading maker of medicines derived from blood pl asma, according to the Financial TImes. Grifols share dropped 9% on the news.

This followed the statement on November 19 by the Grifols board, based on the recommendation of its Transaction Committee, that it would not recommend shareholders of the company to accept a potential offer from Brookfield with a valuation of 6.45 billion euros for the entirety of the company’s outstanding share capital (comprising both Class A and Class B shares). This indicative, non-binding valuation from Brookfield implied a price of 10.50 euros per Class A share, which was deemed to significantly undervalue the company’s fundamental prospects and long-term potential.