About a year ago, Illumina, the U.S. gene sequencing giant, announced the largest deal in its 20-year history, sending shockwaves through the entire gene sequencing industry.
In November 2018, Illumina and PacBio, an upstream manufacturer of third-generation sequencing technologies, announced the signing of an acquisition agreement,Illumina to Acquire PacBio for $1.2 Billion in All-Cash Deal, thereby acquiring long-read sequencing technology. According to the announcement released at the time, both parties expected the transaction to be completed by mid-2019.However, this acquisition quickly drew the attention of the UK government and introduced uncertainty.April 2019,UK Competition and Markets Authority (CMA)Issue a statement,has indicated that an investigation has been launched into Illumina’s acquisition of PacBio, and is examining whether the acquisition may result in a “substantial lessening of competition” in any one or more markets for relevant goods or services in the United KingdomAs a non-ministerial department of the UK Government, the CMA is committed to promoting competition for the benefit of consumers both within and outside the UK, ensuring that markets function well for consumers, businesses, and the wider economy.On October 24, 2019, local time, the CMA released the latest documents regarding this highly anticipated transaction, once again casting a shadow over it.In the latest document,UK Regulators Propose to Block Illumina's $1.2 Billion AcquisitionPacBiothe company, to maintain competitiveness in the sequencing market both domestically and globally. The CMA stated that it has “reached a provisional conclusion” that Illumina’s acquisition plan will"Leading to a significant reduction in competition in the UK's next-generation sequencing system market". At this stage, the CMA considers that the only potentially effective structural remedy is to prohibit the proposed merger. In addition, the CMA has assessed other remedies that might alleviate its concerns, including forcing the two companies to divest or license relevant intellectual property. However, the CMA stated that it would consider adopting a range of measures and invited Illumina, PacBio, and the public to propose additional remedies.When the UK’s Competition and Markets Authority (CMA) announced in April this year that it was launching an investigation into the transaction, Illumina insisted that the acquisition plan would not be affected. However, in June, Illumina postponed the expected completion date of the deal to the fourth quarter, amid reports that the CMA would advance the investigation to its second phase. The U.S. Federal Trade Commission also announced an investigation into the relevant agreement. Last month, Illumina and PacBio amended their merger agreement, extending its validity until December 31, with an option for Illumina to further extend it to March 2020.
Illumina did not immediately respond to a request for comment on whether it still intends to acquire PacBio by year-end. However, during Illumina’s conference call yesterday,The company’s CEO, Francis deSouzastated: “Although we are still in the process of document review, we remain confident that this acquisition offers competitive advantages and serves the best interests of both customers and the genomics industry.”It is reported that the latest document also provides a summary of the CMA’s Phase II interim findings, with the CMA inviting interested parties to “make representations on these interim findings” by November 14.References: 1. ANTICIPATED ACQUISITION BY ILLUMINA, INC. OF PACIFIC BIOSCIENCES OF CALIFORNIA, INC. 2. UK Regulators Propose Blocking $1.2B Illumina, PacBio Deal 3. Illumina Reserved in Comments on PacBio Deal, Forthcoming on Qiagen Deal and New Products | 
