Pharmaceutical firm Takeda has reached a takeover agreement with Dublin-based rival Shire, valuing the business at £46bn.
The Japanese company raised the amount of cash in its offer to $30.33 to secure a recommendation. Shire investors will also receive 0.839 new Takeda shares for each share, the companies said.
Shire shareholders will own about half of the combined group after the deal, which will be the biggest in the sector since 2000 if approved by shareholders.
The companies have agreed that up to three Shire directors will join the board once the acquisition is completed.
The takeover is set to come into effect in the first half of 2019.
Shire chief executive Flemming Ornskov said: “I would like to thank the entire Shire team for all that we have accomplished over the last five years to transform Shire into the leading rare disease biotech company and a tenacious champion for patients in need.
“I am confident that this relentless focus will enable us to continue delivering against our priorities throughout this process.
“With a truly innovative portfolio and pipeline, I believe that the combination of the two companies is in the best interests of shareholders and offers an opportunity to improve the lives of even more patients globally with rare and highly specialised conditions.”
Takeda’s chief executive Christophe Weber said: “Shire’s highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda.
“Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies. We are looking forward to the benefits this combination will bring to patients worldwide, the opportunities it will bring for our employees and the returns it will deliver for our shareholders.”
