UK competition regulator looking into $39 billion AstraZeneca-Alexion deal

UK competition regulator looking into $39 billion AstraZeneca-Alexion deal

AstraZeneca (NASDAQ:AZN) is trading down 0.26% at 8129.00

Britain’s competition regulator is reviewing AstraZeneca (NASDAQ:AZN)’s $39 billion buyout of U.S.-based Alexion (NASDAQ:ALXN) on concerns it could reduce competition in the UK market or elsewhere.

The UK’s Competition and Markets Authority (CMA) said on Tuesday it was inviting comments from any interested party on the deal to help its assessment, setting a deadline of June 3 for any submissions.

Anglo-Swedish drug maker AstraZeneca, also a major COVID-19 vaccine producer, agreed to buy Alexion in December in its largest ever deal in a bet on rare-disease and immunology drugs and to diversify away from its fast-growing cancer business.

Cambridge, UK-based AstraZeneca’s shareholders approved the proposal at a general meeting earlier this month.

The United States has cleared the deal, as have other countries including Canada, Brazil and Russia.

“The commencement of the UK CMA’s formal review is another important step towards closing of the proposed acquisition, which we continue to expect will be in the third quarter of 2021,” a representative for AstraZeneca said.

On technical fronts AstraZeneca (NASDAQ:AZN) RSI stood at 71.86 and currently stock is trading above all Moving Average. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : AstraZeneca (NASDAQ:AZN) – BUY: 8126, TARGET: 8212, STOP LOSS : 8013

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