Business / Corporate

Japan's Takeda to seek shareholder approval of Shire purchase plan Dec. 5

Kyodo

Takeda Pharmaceutical Co. said it will convene an extraordinary meeting of shareholders Dec. 5 to win approval for its plan to acquire Irish drugmaker Shire PLC that would make it a global top 10 company in the industry.

But the Japanese pharmaceutical may face criticism by some of its shareholders who regard the $59 billion agreement, announced May 8 and amounting to the biggest-ever Japanese acquisition of a foreign company, as too costly.

Takeda said in a press release Monday it is aiming to win shareholder approval for an issue of new shares to finance the acquisition and complete the acquisition Jan. 8, subject to necessary regulatory and shareholder approval.

The acquisition of Shire will create a company “with the financial strength to continue investing in delivering highly innovative medicines and transformative care to patients around the world,” Takeda President and Chief Executive Officer Christophe Weber said in the press release.

Through the acquisition of Dublin-based Shire, known for its strength in developing drugs for hemophilia and other rare diseases, Takeda will become the world’s ninth-largest drugmaker, boasting combined sales of ¥2.81 trillion.

Takeda will hold the shareholders meeting in the city of Osaka. Shire is expected to convene a meeting of its shareholders the same day.