AbbVie-Shire deal falls through
21 Oct 2014
AbbVie’s £32 billion takeover of drugs firm Shire has been terminated, both companies have confirmed.
During July, US pharmaceuticals firm AbbVie announced its intention to acquire Dublin-based drugs business Shire in a deal worth approximately £32 billion.
The deal was subject to stockholder approval which would most likely have been gained in the fourth quarter of this year.
Yesterday, however, both companies confirmed the formal termination of the deal, with AbbVie’s shareholders being strongly advised to vote against any form of acquisition.
Terminating the deal will incur a $1.6 billion (£1bn) break fee that AbbVie must now pay to Shire by 1700 hours BST today.
AbbVie chief executive officer Richard A. Gonzalez cited the “unprecedented unilateral action by the US Department of Treasury” as a key component in the destruction of the value of the proposed takeover.
This failed acquisition follows the high-profile Pfizer-AstraZeneca takeover attempt which fell through in May.
