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Brussels Accuses Illumina Of ‘Delay Tactics’ To Slow Down Grail Divestiture

 |  May 28, 2023

The European Union has stated that Illumina is using tactics to delay the ruling on whether or not they should divest cancer test developer Grail, per the Financial Times. 

Illumina has stated that it is making efforts to resolve the litigation related to its acquisition of Grail, which has been the subject of a proxy battle led by activist investor Carl Icahn.

If there is a delay, investors may have to wait several months to receive an outcome regarding the future of Grail. In April, US antitrust regulators mandated that Grail must be divested, a decision that Illumina is currently appealing.

Read more: Illumina Granted Fast-Track Appeal Of FTC Order

The EU antitrust authorities halted the transaction in September due to potential competition concerns. The company had executed the deal without obtaining regulatory approval.

Illumina appealed and opposed an expedited final ruling from Brussels regarding the removal of Grail, according to sources familiar with the situation.

The fast-track procedure in Luxembourg permits judges to promptly settle legal disputes deemed urgent.

“Illumina doesn’t want a fast process in court, they are playing delay tactics,” alleged a person with direct knowledge of the EU’s position.

“The way Illumina is behaving contradicts its claim that it wants to solve the issue fast,” the person added.

According to a source familiar with the company’s strategy, any potential delay in legal proceedings could provide an opportunity to sell Grail at a higher market value while the company exercises its legal rights to defend itself.