Illumina, a gene-sequencing company based in San Diego, is currently exploring divestiture options for Grail following a ruling by the European Commission (EC). The EC has mandated that Illumina must sell the recently acquired business within the next 12 months.
According to an announcement made on Friday, Illumina has the option of pursuing a third-party sale or a capital markets transaction to comply with the EC’s order. This gives the company flexibility in determining the structure of the divestiture. Additionally, Illumina may request a three-month extension to meet the divestiture deadline.
In 2021, Illumina completed its acquisition of Grail, a prominent cancer-test developer, for a total of $7.1 billion. However, regulatory concerns surrounding antitrust issues led to the deal being blocked by regulators last year.
Despite the EC’s ruling, Illumina maintains its belief that the commission does not have jurisdiction over its acquisition. The company has taken legal action by challenging the EC’s jurisdiction in the European Court of Justice. Currently, a decision regarding this matter is still pending.