EU Approves Illumina’s Divestment Plan for Cancer Test Maker Grail

1. The European Commission has granted approval for Illumina's planned divestment of Grail, the cancer diagnostic subsidiary, as reported by Reuters and other sources.
2. The divestment plan was the result of a two-year battle with European Union antitrust regulators.
3. Illumina must capitalize Grail with around $1 billion if it spins off the cancer screening company to create an independent business.
4. Selling Grail to a third party would free Illumina of the need to capitalize Grail, but the buyer would need approval from the European Commission and likely other regulators.
5. Illumina still expects to finalize the terms of the divestment by the end of June.
6. The initial commission divestiture order states that Illumina can only retain up to a 14.5% ownership stake in Grail.
7. The clarity on Grail's capitalization could encourage investors to own Illumina stock.