A regulatory agency in the UK announced Tuesday it has opened a review into AstraZeneca’s planned $39 billion acquisition of New Haven-born Alexion Pharmaceuticals to see if the merger will reduce competition in the market.
The UK’s Competition and Markets Authority said it is examining whether the takeover “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The agency has until July 21 to either clear the deal or refer it to a more intensive, “phase 2” investigation. Parties involved have until June 3 to comment to the agency.
Spokespeople for Alexion and AstraZeneca told New Haven Biz via email Tuesday that the agency’s inquiry was an expected part of the deal’s review process.
“The commencement of the UK CMA’s formal review is another important step towards closing of the proposed acquisition, which we continue to expect will be in Q3 2021,” a spokesperson for UK-based AstraZeneca said.
Regulators in 10 countries including the U.S. and Canada have already approved the takeover, along with 99% of shareholders at both companies. The Federal Trade Commission gave its green light in April.
Regulatory approval is still needed in the UK, the European Union and Japan, according to AstraZeneca.
After the merger, Alexion will become “Alexion, The AstraZeneca Rare Disease Unit,” and will continue to be based in Boston, the companies have said.
AstraZeneca said earlier this month that it expects to have a “continued presence” at the New Haven site, where it employs more than 500 people, into 2022. No site changes are planned at least through the end of this year, the company has said.
Contact Natalie Missakian at news@newhavenbiz.com
