BGI, Complete Genomics Clear Last Regulatory Hurdle
BGI-Shenzhen surmounted its final regulatory hurdle to its planned $117.6 million acquisition of Complete Genomics, the Chinese sequencing giant and U.S. provider of sequencing technology and services said today, clearing the path toward completion of the six-month-old deal.
BGI-Shenzhen and Complete Genomics said they obtained approval from the State Administration of Foreign Exchange of the People's Republic of China for the acquisition. The okay came some two weeks after the two obtained approval from another Chinese government agency, the Ministry of Commerce.
“Accordingly, all relevant regulatory approvals in connection with the proposed acquisition have been received,” BGI-Shenzhen and Complete Genomics said in a statement.
The deal survived U.S. government scrutiny in January, when the Federal Trade Commission approved early termination of the Hart-Scott-Rodino waiting period. That approval came a week after the Committee on Foreign Investment in the U.S. (CFIUS) gave its nod to the acquisition.
Pending regulatory approvals in the U.S. and China, BGI-Shenzhen extended its tender offer to buy Complete Genomics numerous times since the deal was announced in September. The most recent extension ends at 11:59 p.m. EDT on Thursday.
When the current extension was announced March 1, the prospective acquirer and acquisition target said that as of the close of business that day, approximately 30,715,625 shares representing about 87% of Complete Genomics’ common stock had been validly tendered toward the offer.
BGI-Shenzhen has offered to buy Complete Genomics’ outstanding stock for $3.15 per share cash. BGI operates a number of genome sequencing centers internationally, while Complete Genomics, established in 2005, offers whole human genomesequencing services based on its Complete Genomics Analysis (CGA™) platform, which combines the firm’s DNA nanoarrays and ligation-based read technology with informatics and data management software.
BGI-Shenzhen has said it would keep Complete Genomics in the U.S., where the company is headquartered in Mountain View, CA.