Takeda's existing shareholders are facing a hard time as their stake will be reduced to half.
To pay the cash fraction of the deal, Takeda told that it had acquired a loan facility of $31 billion with Sumitomo Mitsui Banking Corp., JP Morgan Chase Bank NA, and MUFG Bank Ltd., among others. Having Shire also will increase Takeda's focus on gene-oriented treatments rather than traditional chemical compounds.
Overall, it appears Takeda made five public bids for Shire.
If he gets past that hurdle Weber will then need to knit together a new top 10 - by sales - global pharma company while carving out $1.4 billion in cost synergies. Takeda also would get increased exposure to the US, the world's biggest pharmaceutical market and where Shire generates most of its revenue. That's a 60 percent premium to the price before Takeda first said it wanted to take over Shire, on March 28.
A fortnight after Takeda and Shire reached a preliminary deal and agreed to conduct due diligence on both sides, a cash and shares agreement has been reached which values the FTSE 100 company at £49 a share.
However, Takeda's research and development hub will stay in Boston, she said. It is one of the greatest deals which has ever happened happened in the pharmaceuticals company.
"Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda", Christophe Weber, Takeda's president and CEO, said in a statement.
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The company expects it may reduce the combined workforce by 6% to 7% in the three years after the takeover, it said.
Susan Kilsby, chairman of Shire, added that by combining with Takeda, "Shire helps create an even stronger biopharmaceutical company, with a robust R&D pipeline and expanded global footprint".
The enlarged group will be a leader in treatments in gastroenterology, neuroscience, oncology, rare diseases and blood-derived therapies, used for serious conditions such as haemophilia.
Immediately following completion, Shire shareholders will own approximately 50 per cent. of the combined group.
Takeda's board members have approved the details of the acquisition plan that the company will formally propose to Shire, according to sources.
In a separate statement today, Takeda said it will continue to focus on growing its oncology portfolio, which along with its hematology holdings expanded past year when Takeda acquired Ariad Pharmaceuticals for $5.2 billion.