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Takeda's Shire takeover to bring $963 million fee

Staff Writer | November 13, 2018
Banks, law firms and other advisers stand to earn up to $963 million in fees from Takeda Pharmaceutical's $62 billion takeover of drugmaker Shire, according to documents for the deal published on Monday.
Shire
Acquisition   Takeda expects to spend about $733.4 million
The deal will be the largest-ever overseas acquisition by a Japanese company and will lead to big payments to advisers working on both sides of the transaction.

The Japanese company expects to spend about $733.4 million in fees and expenses in total, while London-listed Shire's costs will range between $216.5 million and $229.5 million, the companies disclosed in the documents.

Takeda’s team of advisers includes investment banks Evercore , JP Morgan and Nomura while Shire’s line-up includes Citigroup, Goldman Sachs and Morgan Stanley.

Takeda's single biggest expense will be its financing arrangements for the takeover which will cost it $386.6 million. That financing package includes a bridge loan of almost $31 billion from lenders including Sumitomo Mitsui Banking Corp and MUFG.

Takeda is also spending $111.7 million on financial and corporate broking advice and $44.2 million on lawyers, the documents show. Its other costs include $24.3 million for accounting advice and $6.3 million to public relations consultants.

Meanwhile, Shire estimates that it will pay banks as much as $150 million for their advice during the takeover, and up to $70 million to its lawyers.


 

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