Japan’s drugmaker Takeda Pharmaceutical’s $62 billion acquisition of London-listed Shire will grant fees of $963 million to Banks, law firms, and other advisers, according to documents of the deal released on Monday. As reported in Reuters, it will be the largest-ever overseas deal by a Japanese company leading to high payments of advisers operating in both sides of the transaction.
In the documents, the Japanese company disclosed its expectations to spend about $733.4 million in expenses and fees in total, while Shire costs will range from $216.5 million to $229.5 million. Takeda has lined up a team of advisers including investment banks JP Morgan, Evercore, and Nomura. On the other hand, Shire has approached Goldman Sachs, Citigroup, and Morgan Stanley.
According to Reuters’s news, Takeda will record its biggest expense in the financing arrangements for the acquisition which will cost the company around $386.6 million. It includes $31 billion bridge loan from lenders which include MUFG and Sumitomo Mitsui Banking Corp.
Further, documents of the deal showed that the Japanese company is spending nearly $44.2 million on lawyers while financial and corporate broking advice fees will cost about $111.7 million. Its others costs include $24.3 million and $6.3 million for accounting advice and public relations consultants respectively.
Meanwhile, the London-based company is spending up to $70 million on its lawyers and will pay about $150 million to banks for their advice. On Monday, Takeda said that it is still seeking approval from European regulators and the investors to go ahead with the deal. It has arranged a shareholder meeting of 5 December for investors to vote on the acquisition. The takeover has already received approval from regulators in the United States, China, Japan, and Brazil.
With Takeda’s market value of just about $32 billion, some investors are concerned how well the company will cope with its debt repayments. However, the acquisition will help the Japanese company to propel into the top 10 ranking s of global drug-makers by sale.