BRUSSELS — The European Union on Thursday ordered U.S. biotech giant Illumina to undo its $7.1 billion purchase of cancer-screening company Grail because it closed the deal without approval of regulators in the 27-nation bloc.over the summer for jumping the gun on the acquisition without its consent. Now, the order to unwind the deal “restores competition in the development of early cancer detection tests,” EU antitrust Commissioner Didier Reynders said.
Allowing the deal to stand would have undermined the credibility of EU regulators. Companies almost invariably play by the rules and wait to complete an acquisition or merger until antitrust authorities have cleared it, according to the European Commission, the EU’s executive arm and top antitrust enforcer.
Illumina must “restore the situation prevailing before” the acquisition, regulators said, and how Illumina divests itself of Grail also needs EU approval.