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Shire/Takeda: How deal risks create M&A opportunities
Author(s) -
Tournier Florence
Publication year - 2019
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22387
Subject(s) - shire , scrutiny , politics , economics , business , political science , law , geography , archaeology
Abstract M&A activity in 2018 has been concentrated––in terms of news flow, deal length, spread width, size and volume––around two main mega‐deals, the competing bids of Fox and Comcast for Sky and Takeda's acquisition of Shire, which both ended successfully. The US‐China trade war and European‐wide political concerns, including the uncertainty and lack of visibility around Brexit and the Italian budget, may have discouraged large transactions. Overall deal risk has also increased with enhanced regulatory scrutiny over national interest in sensitive sectors. In this article, we will focus on one of them: Takeda's acquisition of Shire, whose interest lies in the number and nature of issues involved, as well as the attractiveness of the trade until the very end.