Benzinga | Oct 29, 2021 12:43PM EDT

EC Adopts Interim Measure, Tells Grail To Work On Alternatives To Illumina Deal

* The European Commission (EC) told Grail to "actively work" on alternatives to its acquisition by Illumina Inc (NASDAQ:ILMN) if the takeover is ultimately blocked in the internal market.

* Related Link: Illumina Completes Grail Buyout Despite Uncertainty In Regulatory Process.

* The unprecedented order is part of binding measures that EU competition chief Margrethe Vestager imposed on Illumina following its completion of the Grail acquisition despite an ongoing antitrust probe.

* The premature completion of the deal has "put at risk" the effectiveness of EU merger control enforcement, Vestager said.

* Under the measures, Grail must remain separate from Illumina and have independent management acting in the interest of Grail.

* The parties cannot share confidential business information, and their business interactions should be "at arm's length," meaning that Grail shouldn't get better treatment compared with its competitors, the Commission said.

* The companies can be fined up to 10% of global revenue if they don't comply.

* European Commission's review is currently set to run until February 4, 2022.

* Price Action: ILMN shares are down 0.14% at $412.19 during the market session on the last check Friday.