Roche Holdings Ltd.
) recently announced that the Federal Trade Commission (
) has requested for additional information regarding the company's
proposed acquisition of
). The request, termed as a 'second request,' seeks additional
information about Roche's microarray business.
The second request extends the waiting period, imposed by the
Hart-Scott-Rodino Antitrust Improvements Act, by 10 days after
Roche complies with the request. The extension can be increased
voluntarily by Roche or terminated sooner by the FTC.
We note that Roche had first announced its bid earlier this year
in January, to acquire all shares of Illumina at an offer price of
$44.50 per share (aggregate value $5.7 billion) in cash.
Roche had made multiple efforts in the past to strike a deal
with Illumina, but the latter was unwilling to participate in
substantive discussions. This led Roche to commence a tender offer
to purchase Illumina's outstanding shares.
Post the potential acquisition, Roche intends to combine
Illumina with its Applied Science business, thereby strengthening
its current offerings in the Life Science market. Roche operates
through two segments - Pharmaceuticals and Diagnostics. Applied
Science is a wing under the company's Diagnostics division.
Roche believes that this acquisition will strengthen its
position in the sequencing and microarrays market. Moreover, it
will help address the growing demand for genetic/genomic
We currently have a Zacks #2 Rank (short-term Buy rating) on
Roche. We believe that this transaction will add to the company's
portfolio, thereby driving long-term growth.
ILLUMINA INC (
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