Illumina’s planned $7.1 billion acquisition of cancer test developer Grail has encountered a hurdle as the U.S. appeals court sent the case back to the Federal Trade Commission (FTC). The Fifth Circuit Court of Appeals acknowledged the anticompetitive concerns raised by the regulator but raised questions about the standard used in the evaluation.
The court, in a 34-page opinion issued on Friday, determined that while the combination is likely to “substantially lessen competition,” the Commission employed a standard inconsistent with the language of the Clayton Act. Consequently, the appeals court vacated the Commission’s order and instructed a reconsideration at the FTC.
The initial FTC order in April mandated Illumina to divest Grail, a decision echoed by the European Commission in October. Illumina responded to the ruling, stating, “We are reviewing the decision,” according to several media outlets, reported Wall Street Journal.
Related: FTC Orders Illumina To Divest GRAIL To Protect Competition
Illumina took proactive steps on Monday by filing a draft registration statement with the U.S. Securities and Exchange Commission (SEC) for a potential divestiture of its Grail unit. This move follows the European order against the acquisition. Illumina, based in San Diego, California, added that if it succeeds in an impending legal challenge against the European Commission’s decision, it could invalidate the basis for the order.
However, should Illumina fail in the legal battle or face an adverse ruling from the U.S. Fifth Circuit Court of Appeals, the company is prepared to move forward with the divestiture.
Reports from late last month indicated that Illumina has received interest from various parties regarding the acquisition or investment in its Grail cancer test detection unit, acquired for approximately $7 billion in 2021. The unfolding developments in the legal and regulatory landscape add complexity to Illumina’s strategic plans for Grail, raising questions about the future ownership and direction of this critical cancer testing technology.
Source: WSJ
Featured News
Ropes & Gray Welcomes New Partner to Boston Antitrust Practice
Nov 4, 2024 by
CPI
Private Equity Giants Eye Minority Stake in Intel’s Altera Chip Unit
Nov 4, 2024 by
CPI
Michael Jordan’s NASCAR Antitrust Case Kicks Off in Federal Court
Nov 4, 2024 by
CPI
Fifth Circuit Questions FTC’s Authority in Intuit’s Challenge to Internal Adjudication
Nov 4, 2024 by
CPI
EU Antitrust Decision on Novo Holdings’ Catalent Acquisition Set for December
Nov 4, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Remedies Revisited
Oct 30, 2024 by
CPI
Fixing the Fix: Updating Policy on Merger Remedies
Oct 30, 2024 by
CPI
Methodology Matters: The 2017 FTC Remedies Study
Oct 30, 2024 by
CPI
U.S. v. AT&T: Five Lessons for Vertical Merger Enforcement
Oct 30, 2024 by
CPI
The Search for Antitrust Remedies in Tech Leads Beyond Antitrust
Oct 30, 2024 by
CPI