Takeda offers to buy Shire for $62B

FILE PHOTO: Vitamins made by Shire are displayed at a chemist's in northwest London, Britain July 11, 2014. REUTERS/Suzanne Plunkett/File Photo (Reuters)

Japan’s Takeda Pharmaceutical made a formal offer to buy Irish drugmaker Shire for $62 billion.

It is considered the largest overseas acquisition by a Japanese company.

The prices breaks down to $66.53 a share in cash and stock. Takeda raised the amount of cash in the offer to $30.33.

That plus 0.839 Takeda share for each Shire share comes to $62 billion.

The offer represents a more than 64 percent premium to Shire’s March 23rd closing price.

Takeda had until May 8th to make a binding offer, under UK takeover rules.

Shire shareholders will own about half of the combined company if approved by shareholders.

The combination would create the world’s eighth-largest drugmaker.

Last month, Shire reported  a 6 percent rise in first quarter earnings.