A Shocking Turn in the Illumina/Grail Merger

There’s a new and surprising development in the ill-fated Illumina/Grail merger.

The higher Court of Justice of the European Union ruled in favor of Illumina, a gene-sequencing specialist, and against the European Commission’s decision that the $7.1 billion deal violated antitrust laws, according to a report from Reuters.  

The ruling is final and cannot be appealed, the court said, according to the Reuter’s Report.

In a release, Illumina said the judgment confirms its longstanding view that the European Commission exceeded its authority by asserting jurisdiction over this merger. 

Illumina spun off Grail, a specialist in early cancer detection, in 2016 and moved to re-acquire the company in 2021. The acquisition was controversial because Illumina went ahead with the deal despite intense scrutiny from the EU Commission.

Because Illumina violated the ruling from the EU Commission the company faced a hefty $476 million fine. According to the report from Reuters, Illumina said it does not have to pay the fine.

The fallout from the Grail acquisition has completely changed Illumina. In June of 2023, the company’s longtime CEO, Francis deSouza resigned from his position. deSouza’s departure came following a proxy fight.

 Nearly three months after deSouza’s departure, Jacob Thaysen took the helm. In December of 2023 Illumina conceded its fight for Grail and moved to divest the company.

Related:Illumina Set to Acquire Grail for $8B

In June, Illumina’s board approved a plan to spin off Grail. The cancer blood testing company has applied to be listed on Nasdaq as GRAL.

Illumina maintains a minority share of 14.5% in Grail, and Illumina will continue to support the company with its sequencing technology and suite of services.

In the US, the FTC Commissioners dismissed the case against Illumina and Grail on Aug. 15, following the successful spinoff of the company.