CMA cancels Illumina / Pacific Biosciences Phase 2 investigation and parties abandon deal
The Competition and Markets Authority (CMA) has withdrawn is second stage inquiry into the proposed acquisition by Illumina, Inc. of Pacific Biosciences of California, Inc.
The reference was made on 27 June 2019. On 24 October the CMA provisionally found that the merger may be expected to give rise to a substantial lessening of competition in the market for the supply of next generation DNA sequencing in the UK.
The CMA invited views on possible remedies including divestment or licensing of IP.
The review period was extended to 5 February 2020 but the CMA reported on 3 January that the parties have abandoned their merger. The CMA therefore cancelled its reference.
Meanwhile the US Federal Trade Commission (FTC) was investigating the transaction and in December 2019 proposed to block it. The CMA confirmed that it was cooperating with the FTC in its investigation.
The parties have announced that they are disappointed not to have completed their deal. Sometimes the weight of regulatory scrutiny on both sides of the Atlantic cannot be overcome through remedies that would still keep intact the commercial rationale of a transaction.
The Competition and Markets Authority (CMA) has withdrawn is second stage inquiry into the proposed acquisition by Illumina, Inc. of Pacific Biosciences of California, Inc.
The reference was made on 27 June 2019. On 24 October the CMA provisionally found that the merger may be expected to give rise to a substantial lessening of competition in the market for the supply of next generation DNA sequencing in the UK.
The CMA invited views on possible remedies including divestment or licensing of IP.
The review period was extended to 5 February 2020 but the CMA reported on 3 January that the parties have abandoned their merger. The CMA therefore cancelled its reference.
Meanwhile the US Federal Trade Commission (FTC) was investigating the transaction and in December 2019 proposed to block it. The CMA confirmed that it was cooperating with the FTC in its investigation.
The parties have announced that they are disappointed not to have completed their deal. Sometimes the weight of regulatory scrutiny on both sides of the Atlantic cannot be overcome through remedies that would still keep intact the commercial rationale of a transaction.
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