As expected, Takeda's buy of Shire approved today by EC

As scheduled for today, the European Commission revealed that it has cleared the proposed $62 billion acquisition of Ireland-headquartered rare diseases specialist Shire (LSE: SHP) by Japanese pharma major Takeda Pharmaceuticals (TYO: 4502) first announced on May 8 this year.

Following discussions between Shire and Takeda with the European Commission in relation to the future potential overlap in the area of inflammatory bowel  disease between Takeda’s marketed product Entyvio (vedolizumab) and Shire’s pipeline  compound SHP647, the European Commission has decided not to initiate proceedings under Article 6(1)(c) of Council Regulation (EC) 139/2004 and has granted a Phase I conditional  clearance for the acquisition, subject to both companies entering into commitments to divest SHP647 and certain associated rights.

Accordingly, Takeda has confirmed today that the EU Merger Control Condition has now been satisfied. The divestment of SHP647 and certain associated rights is not a condition to the completion of the acquisition.