EU antitrust regulators faced a poignant blow as an adviser to Europe’s highest court delivered scathing criticism of the decision to thwart Illumina Inc’s attempted $7.1 billion acquisition of Grail Inc, citing an overreach of power.
Should judges uphold the adviser’s opinion, ramifications could reverberate throughout the EU competition landscape, possibly reshaping the enforcer’s stance on other mergers, notably one involving Qualcomm Inc.
Related: Illumina, a gene sequencing stalwart, managed to sidestep Carl Icahn’s second proxy battle amid ongoing efforts to divest from Grail.
The European Commission’s activation of Article 22 in 2021 to scrutinize the Illumina-Grail deal, despite falling short of the EU merger revenue criterion, stemmed from petitions by several EU nations.
In the face of Illumina finalizing the transaction before obtaining regulatory green lights, the Commission exercised its veto power, mandating deal dissolution and sparking legal confrontations from Illumina.
Underlining the flaws in the General Court’s reading of Article 22, CJEU Advocate General Nicholas Emiliou, as highlighted by Reuters, emphasized the inappropriateness of member states requesting Commission intervention in non-“Community dimension” deals.
Emiliou cautioned against endowing the Commission with sweeping authority, asserting such powers would sanction near-unrestricted concentric review globally, irrespective of turnover metrics or EU footprints.
He rebuked the proposed procedures for their inefficacy, lack of predictability, and dearth of legal certitude.
Contrarily, Illumina, in a statement, embraced the adviser’s recommendations, deeming the Commission’s jurisdictional claim over the merger as unwarranted.
In December, following a protracted tussle with U.S. and European antitrust watchdogs spanning nearly three years post-acquisition announcement, Illumina acceded to divesting from Grail.
With judge decisions looming in the near horizon, Emiliou’s non-binding stance is likely to strongly influence the upcoming rulings.
Price Action: Illumina’s shares registered a 3.60% surge at $137.98 during the last Thursday’s market scrutiny.
Disclaimer: Partially generated with AI assistance, this content was meticulously reviewed and authorized for publication by Benzinga editors.
