CSL share price cracks under Vifor Pharma acquisition delay

Regulatory delays are causing concern…

| More on:
a medical researcher rests his forehead on his fist with a dejected look on his face while sitting behind a scientific microscope with another researcher's hand on his shoulder as if giving comfort.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The CSL share price is trading 2% lower at $270.63
  • Regulatory approval for the Vifor Pharma acquisition is now expected to be delayed by a few months
  • CSL remains confident the deal will go through

The CSL Limited (ASX: CSL) share price is being bled on Thursday amid delays to its big A$17.2 billion Vifor acquisition.

Shares in Australia’s third-largest listed company are coming under pressure as investors absorb the latest information.

At the time of writing, CSL shares are trading 2% lower at $270.63 apiece. For context, the S&P/ASX 200 Index (ASX: XJO) is off the mark by 0.79% this morning.

Slower than first thought

When initially announced to shareholders in December last year, CSL expected the acquisition of Swiss therapeutics giant, Vifor Pharma, to be completed by June. However, as per today’s announcement, this has fallen off track — pressuring the CSL share price.

According to the release, the original completion date will be pushed back due to the regulatory approval process. While no specific details were shared, the biotech behemoth now expects the process will take a few more months.

In the Vifor Pharma acquisition presentation provided in December, CSL outlined ‘completion risk’ as a key risk. This is where the company noted the deal requires foreign direct investment and other regulatory filings and approvals in certain key jurisdictions.

It appears some investors are cautious of the deal falling through. In turn, the CSL share price is weakening on the news today.

However, today CSL mentioned it remains confident in the deal being done.

CSL remains confident of completing its acquisition of Vifor Pharma AG and looks forward to expanding its presence in the rapidly growing nephrology market, as well as leveraging the companies’ combined expertise to continue to deliver innovative solutions to rare and serious illness.

How has the CSL share price fared?

While the CSL share price has held up much better than some of its healthcare peers, the returns so far this year aren’t exactly astounding.

Since the beginning of 2022, CSL shares have tumbled 8.5%. Although, this is far better than the 40% fall exhibited by Fisher & Paykel Healthcare Corp Ltd (ASX: FPH). Likewise, it is a welcomed return compared to the 20% dent to Ansell Limited (ASX: ANN).

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

Projection of two hands being shaken on a deal.
Mergers & Acquisitions

2022 has seen a record first half for ASX mergers and acquisitions. Here’s the lowdown

Deals have hit new heights in Australia so far this year.

Read more »

Man looking excitedly at ASX share price gains on computer screen against backdrop of streamers
Mergers & Acquisitions

Guess which ASX software share just rocketed 150% on takeover news

PayGroup shares are moving into uncharted territory today.

Read more »

Bank Shares

ANZ share price rises as MYOB acquisition rumours swirl

Is ANZ about to make a major acquisition?

Read more »

A man wearing a white coat and glasses is wide-mouthed in surprise.
Mergers & Acquisitions

Why is the ResApp share price crashing 29% today?

ResApp shares have been hammered on Tuesday...

Read more »

Busy freeway and tollway at dusk
Mergers & Acquisitions

2 ASX 200 infrastructure shares ‘ripe for takeout’: expert

Let's take a closer look.

Read more »

a medical person in full protective clothing holds a tray of Covid-19 vaccinations amid a haze caused by cold and ice.
Healthcare Shares

ResApp share price frozen as $180m Pfizer takeover bid hangs in the balance

The value of Pfizer's takeover bid may soon come to light.

Read more »

A graphic showing three hands holding red paddles with the word BID, indicating a bidding war for an ASX share company
Technology Shares

Infomedia share price surges 9% following third takeover approach

Infomedia has received a third takeover approach...

Read more »

Three colleagues stare at a computer screen with serious looks on their faces.
Consumer Staples & Discretionary Shares

Own Pointsbet shares? Here’s why the company rebuffed a Murdoch takeover approach

Is management betting on better times for Pointsbet shares?

Read more »