The FTC Challenges Amgen’s Acquisition Of Horizon Therapeutics – Merger Arbitrage Mondays

  • May 22, 2023
The FTC is suing to block another multi-billion dollar M&A deal. Shares of Horizon Therapeutics (HZNP) plunged 14% on May 16, 2023, on reports that the FTC was filing a suit to block the company’s sale to Amgen (AMGN). Horizon Therapeutics entered into a definitive agreement to be acquired by Amgen for $28.3 billion on December 12, 2022. We added Horizon as a potential deal in the works on November 29, 2022, when the company reported that it was engaged in preliminary discussions with Amgen, Johnson & Johnson’s (JNJ) unit Janssen and Sanofi (SNY).  Janssen and Sanofi opted out of the bidding, leaving Amgen as the sole suitor. The transaction was initially expected to be completed in the first half of 2023. The first sign of trouble for the deal was in January 2023, when Sen. Elizabeth Warren wrote to the U.S. Federal Trade Commission to express concern about Amgen’s plan to buy Horizon Therapeutics, and Indivior’s (LON: INDV) plan to buy Opiant (OPNT). Indivor successfully  completed the acquisition of Opiant in March. Horizon Therapeutics and Amgen were not so fortunate and received a request for additional information from the FTC in January. The companies received clearances or confirmation of non-applicability related to foreign...

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