Illumina Inc (NASDAQ:ILMN), a genetic testing company, was fined a record 432-million-euro (US$476 million) by the European Union (EU) on Wednesday for closing its takeover of cancer test maker Grail before securing EU antitrust approval, Reuters reported.
The media outlet also noted the European Commission said the size of the fine, amounting to 10% of Illumina's global revenue and the maximum allowed under EU merger rules for such infringements, underscored the seriousness of the offence and aimed to deter such conduct.
Last year the European Commission blocked the $7.1 billion Grail acquisition over concerns it would stifle innovation and consumer choice in the cancer detection tests market.
An Illumina spokesperson said the company would appeal the fine, although a regulatory filing showed that Illumina has already put aside $453 million to cover a potential maximum fine of 10% of turnover.
Shares of Illumina rose 2.3% to $189.37 in early Wednesday trading, although the company’s market capitalization has dropped to $29 billion from about $75 billion when it closed its takeover of Grail in August 2021.
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