Australian govt objects to Mayne Pharma takeover by Cosette
Australian drugmaker Mayne Pharma (ASX: MYX) last week revealed it has been notified by USA-based Cosette Pharmaceuticals that it had received written notice from the Foreign Investment Review Board (FIRB) stating that the Treasurer has objected to the proposed Scheme.
As a result, Mayne Pharma is disappointed to inform shareholders that the FIRB condition precedent to the Scheme will not be satisfied such that the Scheme is unlikely to proceed. However, Mayne shareholders thought otherwise, lifting the company’s shares 24% to $5.96 on the news.
A key hurdle for the deal remains approval from the Foreign Investment Review Board, which continues to assess national-interest implications amid concerns that Cosette may shut Mayne’s Salisbury manufacturing plant in Adelaide. Treasurer Jim Chalmers has previously identified the potential closure - which would affect more than 200 jobs - as a central concern.
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