Dallas, Texas 09/02/2014 (FINANCIALSTRENDS) – Eli Lilly and Co (NYSE:LLY) unlike some of the acquisition sprees of its peer group will be looking instead to takeover some business segments from well-known drug maker Novartis.
However, the takeover process is currently under review by European Union’s antitrust body as it evaluates this particular application along with several others and shall approve only by Oct 3, 2014.
The company has proposed to takeover Novartis’s animal health business for $5.4 billion. Novartis which is a Switzerland based company, requires the approval of the EU, for Eli Lilly and Co(NYSE:LLY) to take over the operations.
The reason for such approval is the size of the company.
If the takeover will be allowed to go through, it will create one of the second-largest animal health companies in the world. Therefore, detractors have urged the European Commission to review the takeover. For the ramifications of monopoly are not in the interests of the region, feel industry experts.
The pharmaceutical industry in the past few weeks has been in the news for a number of other takeover applications.
Some of these include the Roche Holding AG, which has placed $8.3 billion bid on InterMune Inc. Another of these popular takeover deals in the progress is the takeover proposal by AbbVie Inc. to the tune of $54 billion for Shire Plc.
With Eli Lilly and Co(NYSE:LLY), this is another of the high-profile takeover processes in recent times.
Despite the much talked about takeover bids and other upsides, Eli Lilly has been in the midst of some financial downsides as well. This includes the 17% year over year fall, followed by an EPS fall of 39%.