Illumina Ordered to Unwind Grail Acquisition by European Commission

The European Commission (EC) is requiring DNA sequencing company Illumina to unwind its acquisition of liquid biopsy company Grail, an action mirroring the FTC’s April order to do the same.

The EC had prohibited the acquisition in September 2022 “over concerns that the merger would have stifled innovation and reduced choice in the emerging market for blood-based early cancer detection tests.” Nonetheless, the EC said, “Illumina and Grail unlawfully completed the merger ... in breach of EU merger control rules.” The EC fined both companies for implementing the merger.

The EC has three principles the companies must follow during the divestment, or face significant fines:

• The dissolution of the transaction must restore Grail’s independence from Illumina to the same level as prior to the acquisition;
• Grail must be as viable and competitive after the divestment as it was before Illumina’s acquisition; and
• The divestment must be executable within strict deadlines and with sufficient certainty, so that the pre-transaction situation can be restored in a timely manner.

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