CSL shares tumble as Vifor Pharma acquisition speculation looms large

Highlights

  • CSL Ltd is rumoured to be in talks to buy Swiss drug maker Vifor Pharma.
  • The shares of the Company have dipped down in red on ASX today.

ASX listed pharma, and Biotech firm CSL Limited (ASX:CSL) was rumoured to be buying Swiss drug manufacturer Vifor Pharma. The acquisition deal was being speculated to be valued at US$7 billion (AU$10 billion). The buyout discussions are supposedly going on since March.

If the deal is struck, this would be CSL’s biggest acquisition since its listing on the ASX nearly three decades ago.

Why is CSL considering Vifor Pharma acquisition?

  • CSL and Vifor were advancing acquisition discussions to become the world's largest blood plasma treatment providers.
  • Vifor is an established business from Europe, into kidney disease treatment.
  • CSL was speculated to be carrying out due diligence on Vifor pharma, as per media reports.
  • The reports highlighted a deal value of about AU$10 billion with no further details on a potential acquisition.

Is CSL acquiring Vifor pharma?

  • Both CSL and Vifor have issued separate clarifications statements reserving any comments on the media speculation.
  • CSL, in its ASX release, said that it keeps regularly assessing strategic opportunities to improve its business and the health of people.
  • However, it also said that there is no certainty from CSL's side when any such acquisition transaction would occur.
  • Meanwhile, analysts believe that CSL may be diversifying its business as it could lead to potential synergies.

CSL shares on ASX are, however, trading in red, at AU$302.37 per share, as of 11:21 AM AEDT

Bottom line-

Market and media speculation can cause movement in share price. However, investors should only rely on confirmations from the company before taking any buy or sell decision.

Also Read: Pre session: ASX seen opening higher; BHP, Coles, CSL shares in focus

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