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AstraZeneca & Alexion deal reviewed by the CMA

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Miguel A. Rodriguez
Miguel A. Rodriguez
28 May 2021
AstraZeneca is under scrutiny from UK’s competition regulator regarding the purchase of Alexion Pharmaceuticals

The Anglo-Swedish drugmaker has agreed to purchase the US Alexion Pharmaceuticals for $39 billion. This deal, which would be AstraZeneca’s largest to date, was first announced in December 2020. The former is trying to diversify its portfolio, from the cancer business to rare-disease and immunology drugs.

According to AstraZeneca’s statement, when it announced the possible deal, Alexion shareholders would receive $60 in cash and approx. $115 worth of equity per share. The British company said that boards of both firms had approved the deal, and it is to be closed in Q3 2021.

So far, the US, Canada, Brazil, and Russia cleared the deal. Still, the British regulator is concerned that the agreement could minimize competition in the UK or elsewhere. The Competition and Markets Authority (CMA) set a deadline for June 3, as it expects comments from any interested party on the deal to help its assessment.

At the moment of writing, AstraZeneca stock price is trading 0.12% higher, while Alexion closed Monday’s trading session up 0.18%.

Sources: finance.yahoo.com, reuters.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.