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Illumina’s (NASDAQ:ILMN) planned $7.1 billion purchase of cancer test developer Grail was sent back to the Federal Trade Commission by a U.S. appeals court, who still determined that the regulator was correct in finding the deal anticompetitive.
The Fifth Circuit Court of Appeals found that while the combination is likely “to substantially lessen competition,” the Commission used “a standard that was incompatible with the plain language of the Clayton Act,” according a 34-page court opinion issued on Friday.
The appeals court vacated the Commission’s order and remanded the case for reconsideration at the FTC.
The FTC originally ordered Illumina (ILMN) to divest Grail in April and the European Commission also ordered the company to divest the cancer test developer in October.
“We are reviewing the decision,” Illumina said in a statement issued after the ruling according to several media outlets.
Illumina (ILMN) on Monday filed a draft registration statement with the U.S. Securities and Exchange Commission for a potential divestiture of its Grail unit following an order in Europe against its acquisition. San Diego, California-based Illumina (ILMN) added that if it succeeds at the European Court of Justice in an impending legal challenge against the European Commission’s decision, it will invalidate the basis for the order.
If it fails or the U.S. Fifth Circuit Court of Appeals rules against the company, Illumina (ILMN) will proceed with the divestiture.
Endpoint News reported late last month that Illumina has been contacted by parties interested in buying or investing it its Grail cancer test detection unit, which it acquired for around $7 billion in 2021.