EU antitrust regulators were dealt a significant setback when an adviser to Europe's top court opined that they had overstepped their authority by blocking Illumina's $7.1 billion acquisition of Grail. This opinion is pivotal as it could impact the assessment of three other merger deals. Following this development, Illumina's shares saw a 5% increase. The adviser's stance suggests that if the European Court of Justice (ECJ) aligns with this view, approximately $1.25 billion in value could be unlocked for Illumina, comprising around $484 million in fines and about $750 million from a reduced cash outlay for divesting Grail. This comes after Illumina's $8 billion effort to purchase Grail was halted by European regulators. Additionally, the recommendation by the European Court of Justice advocate general could endanger a tool used by EU antitrust officials for extending their merger scrutiny, specifically towards transactions that don't usually meet EU thresholds.
A tool for extending EU antitrust officials' merger scrutiny may be in jeopardy after a European Court of Justice advocate general recommended the bloc's high court restrict the ability to investigate transactions that don't normally trigger EU thresholds. https://t.co/ES7MwSCcJv https://t.co/ZVSMGxCCub
Will Illumina finally catch a break? After an $8 billion effort to acquire Grail was blocked by European regulators, an EU adviser says that Illumina is free to proceed with the merger. https://t.co/05PCivXJXx
"If the ECJ sides with AG, we would see [approximately] $1.25 billion of value being unlocked ([approximately] $484 million of fines and [approximately] $750 million from lower cash outlay as we don't expect Illumina to foot more than a billion for divesting Grail)." https://t.co/98W0PdFvfV
Illumina Shares Rise 5 Percent on Favorable Legal Opinion Submitted to European Court https://t.co/idYw5GSWgD
EU antitrust regulators suffered a blow as an adviser to Europe's top court said they exceeded their powers when they blocked Illumina's $7.1 billion bid for Grail. The adviser's opinion could influence the assessment of three other merger deals https://t.co/X3vlUeNXqn https://t.co/wGBwOpVKg2