Takeda’s ability to fund Shire acquisition questioned as Moody’s warns of more debt
02 APR 2018
Takeda Pharmaceutical [TYO:4502] is unlikely to be able to acquire Shire [LON:SHP] without taking on new debt, Moody’s ratings agency cautioned in an update on 30 March. The warning has fuelled questions about the Japanese company’s ability to fund a Shire takeover without overstretching its finances, The Daily Telegraph reported.
The companies’ “global complexity” and the transaction’s size may make a deal hard to execute, Moody’s said. Ireland-headquartered Shire’s credit rating with the agency is the lowest possible investment grade rating, the Telegraphnoted.
Takeda confirmed last week it was considering a takeover bid for Shire. The UK Takeover Panel has set a 25 April deadline by which Takeda must launch a formal offer if it is to proceed, the report noted.