European Commission Grants Approval for Illumina to Divest Grail

1. The European Commission has officially approved Illumina's plan to part ways with Grail, a cancer diagnostic subsidiary.
2. Illumina has the freedom to choose between selling Grail outright or supporting its journey to the public markets as an independent spinout.
3. The European Commission ordered Illumina to cut ties with Grail last October, more than a year after the companies completed their $8 billion takeover deal.
4. The U.S. Federal Trade Commission also issued a similar edict last year.
5. The European directive requires Illumina to restore the competitive situation prevailing before the completion of the transaction and ensure Grail's independence.
6. If Illumina opts for a capital markets transaction, it must capitalize Grail with approximately $1 billion based on Grail's long-range plan.
7. The Galleri blood test developed by Grail aims to detect the genetic signatures of more than 50 different types of cancer from a single sample.
8. U.S. and European antitrust watchdogs objected to the acquisition, citing concerns that Illumina could throttle back the research work of potential competitors.
9. The transatlantic legal issues led to a proxy fight and the ouster of Illumina's previous CEO and board chair.
10. Illumina has scheduled its first-quarter earnings presentation for May 2.