Illumina Versus European Commission: Legal Battle Over Grail Acquisition Reaches Critical Stage

Illumina Inc ILMN reportedly clashed with EU antitrust regulators, alleging an overreach in their investigation into its $7.1 billion acquisition of Grail Inc. 

The European Commission's invocation of Article 22, a rarely used power to scrutinize deals involving larger companies acquiring smaller rivals, irrespective of meeting the EU merger revenue threshold, has stirred concerns among firms and start-ups seeking buyouts, Reuters reported.

The dispute, central to the EU's determination to review deals outside conventional thresholds, reached the Court of Justice of the European Union (CJEU) after Illumina's prior challenge against the EU competition authority's decision to block the deal failed in a lower tribunal last year.

According to the report, Illumina's legal representative argued that the EU merger regulation doesn't grant the Commission authority to control mergers falling below the prescribed thresholds. 

In contrast, Commission lawyer Nicholas Khan dismissed Illumina's stance, labeling it an attempt to reshape the merger regulations and asserting that Illumina's arguments were more of a policy declaration than a legal basis.

The CJEU will receive Advocate General Nicholas Emiliou's non-binding opinion on March 21, which typically influences the Court's ruling, which is expected in approximately six months.

In August, Illumina disclosed that the Securities and Exchange Commission is the latest government agency investigating the company's Grail acquisition.

Monday, Illumina confidentially submitted a draft registration statement on Form 10 related to its potential divestiture of GRAIL to the U.S. Securities and Exchange Commission under an order Illumina received from the European Commission directing the company to divest Grail.

Price Action: ILMN shares are up 0.19% at $117.86 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.