(Reuters) – Illumina’s board has approved a spinoff of Grail, the maker of gene sequencing machines said on Monday, as the deal to revive the company three years ago faced massive antitrust scrutiny and opposition from investor Carl Icahn.
Shareholders will receive one share of Grail common stock for every six shares of Illumina (NASDAQ:), who will retain a 14.5% stake in the unit after the spin-off on June 24. Illumina shares rose 4% in extended trading.
The maker of gene sequencing machines founded Grail and spun it off in 2016, but reacquired it in 2021 for $7.1 billion to enter the cancer early detection market.
The deal was opposed by antitrust regulators over concerns that Illumina would prevent Grail’s rivals from accessing its technology to develop competing blood-based early cancer detection tests.
The EU regulator had fined Illumina 432 million euros ($471.18 million) in July last year since it completed the acquisition before gaining approval from competition authorities.
Grail’s higher-than-expected expenses and delays in continuing testing had also forced Illumina to take impairment charges that Icahn said in December totaled $4.7 billion.
($1 = 0.9168 euros)
