Illumina finalises $8bn Grail merger despite ongoing EU probe

In a rarely seen move, US biotech company Illumina has finalised its $8 billion (€6.85 billion) acquisition of cancer screening company Grail, despite an ongoing antitrust investigation by the EU.

The deal, which has an expiry date of December 20, is being examined by regulatory authorities in Brussels over concerns that it could reduce competition and innovation. Both companies are worried that the transaction would not receive official approval before that date and have made the unusual move of closing the deal ahead of receiving regulatory approval.

In a statement, Illumina said that Grail would be held as a separate, independent company for the duration of the European Commission review. 

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The announcement has been timed to occur during a period of relative inactivity in Brussels, with many officials on a summer break, and is likely to be considered somewhat provocative by the bloc, with questions over its legal standing likely to arise. 

By taking this action, the companies risk a fine and could face lengthy legal battles in the European courts.

Illumina first announced its intention to acquire Grail around a year ago, four years after it spun the cancer screening firm off.

Grail, which is backed by Bill Gates and Jeff Bezos among others, has produced a blood test that can detect 50 different types of cancer before symptoms appear. 

"Illumina’s acquisition of Grail will accelerate access and adoption of this life-saving test worldwide," said the company in a statement.

At present, Grail posts no revenues in the EU, prompting Illumina to argue that the merger does not fall with the Commission's remit as no regulatory thresholds are triggered inside the bloc or any of its member states.

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The Luxembourg-based General Court of the European Union will hear Illumina's jurisdictional challenge later in the year.

"By holding Grail separate while proceedings are ongoing, Illumina is positioned to abide by whatever final decision is reached in these legal processes," the statement said.

"Just as we are now able to screen for early-stage diabetes and high cholesterol, we will soon be able to conduct multi-cancer early detection with a simple blood test in your doctor’s office," said Illumina CEO Francis deSouza.

"Since early detection of cancer saves lives, this new genomic test will be nothing short of transformational for human health and the economics of healthcare."

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