Illumina Not To Pay EUR 432 Mln EU Fine Over Grail Deal After Favorable European Court Verdict

(RTTNews) - Illumina, Inc. (ILMN) Tuesday announced that the 432 million euros fine imposed by the European Commission over GRAIL deal is no longer be payable after favorable verdict by the European Court of Justice or ECJ.

The DNA sequencing and array-based technologies provider noted that the court ruled that the European Commission did not have jurisdiction over Illumina's acquisition of GRAIL.

According to the company, the judgment confirms its longstanding view that the European Commission exceeded its authority by asserting jurisdiction over this merger.

The basis for the 432 million euro fine has now been removed, the firm noted.

The dispute between Illumina and the EU began in 2021 when Illumina proceeded with the purchase of cancer test developer Grail while EU regulators were still examining the potential impact on competition.

In September 2022, the Commission prohibited the acquisition of GRAIL by Illumina over concerns that the merger would have reduced choice in the emerging market for blood-based early cancer detection tests.

However, Illumina and GRAIL completed the merger during the investigation without obtaining approval from Brussels, in breach of EU merger control rules.

In 2023, Illumina, the world's largest gene sequencing company, was hit by the record fine, and was ordered by the Commission to divest Grail.

Illumina in December last year had said that it would divest GRAIL through a third-party sale or capital markets transaction, consistent with the European Commission's divestiture order. Earlier this year, the divestment plan for Grail received approval from the Commission.

In the US, the FTC Commissioners dismissed the case against Illumina and GRAIL on August 15, following the successful spinoff of GRAIL, thus ending the US proceedings.

Following Illumina's spin-off of GRAIL in June 2024, GRAIL is now a public company, trading on Nasdaq under the ticker symbol "GRAL.". Illumina maintains a minority share of 14.5% in GRAIL.

Illumina said it will continue to support the company with its sequencing technology and suite of services.