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UK’s CMA reviews AstraZeneca’s $39B proposed acquisition of Alexion

UK’s CMA reviews AstraZeneca’s $39B proposed acquisition of Alexion
UK’s CMA reviews AstraZeneca’s $39B proposed acquisition of Alexion

The Competition and Markets Authority of the UK is reportedly reviewing the $39 billion planned acquisition of Alexion by UK-based biotechnology company, AstraZeneca. The regulator is assessing on whether the deal could reduce competition in Britain or other markets.

As per a CMA statement, it is inviting comments from any interested parties on the transaction for helping its assessment. The regulator has set a deadline of 3rd June 2021 for any submissions.

For the record, the CMA review forms part of an earlier analysis that is referred to by the regulator as “phase 1”. The analysis is expected to be wrapped up by 21st July 2021. The CMA anticipates that it will post its decision afterwards whether the acquisition has been cleared or will be referred to a deeper “phase 2” scrutiny.

According to an AstraZeneca representative, the commencement of the UK CMA’s formal review represents another significant step towards the closing of the proposed takeover. The company continues to expect that the deal will be closed in the Q3 of 2021.

As per reliable sources, AstraZeneca agreed to purchase Alexion in December 2020 in its biggest ever transaction in a bet on rare-disease immunology. The decision was also taken for enhancing the company’s business, which comprises a rapidly spreading cancer medicines unit and a major SARS-CoV-2 vaccine.

It is to be noted that AstraZeneca is hoping that an enhanced version of the best-selling drug as well as other rare-disease drugs of Alexion will help the company in building a stronger hold in China and other surfacing markets. Earlier in May 2021, stakeholders of the UK-based firm cleared the proposed acquisition at a general meeting, where 99.89% of the votes cast were in favor of approving the deal.

The transaction has been approved by the United States in April 2021. While other countries comprising Russia, Canada, and Brazil have also given approval, regulatory clearances from regions including the European Union and Japan are pending.

Source credit: https://www.reuters.com/world/uk/britain-looking-into-astrazeneca-alexion-deal-competition-concerns-2021-05-25/

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