European Commission says Illumina has to unwind Grail acquisition

The European Commission earlier today sent a "Statement of Objections" to Illumina and Grail informing them of the restorative measures it intends to adopt under the EU Merger Regulation, following the Commission’s decision to prohibit the implemented acquisition of Grail by Illumina. Illumina has to unwind the acquisition to give the Commission’s prohibition decision its full effect, the agency said in a statement. In the Statement of Objections, the Commission sets out the intended restorative measures which include: tthe divestment measures that the Commission considers Illumina must implement to unwind the transaction with Grail and the transitional measures that Illumina and Grail need to comply with until Illumina has dissolved the transaction. "Specifically, the divestment measures must be implemented in line with the following principles: First, the dissolution of the transaction must restore Grail”s independence from Illumina, to the same level that Grail had prior to the completion of the transaction. Second, Grail must be as viable and competitive after the divestment as it was before Illumina’s acquisition, to ensure that the innovation race between Grail and its rivals can continue as before. Finally, the divestment must be executable swiftly and with sufficient certainty, so that the pre-transaction situation can be restored promptly," the agency wrote.