Mayne ‘disappointed’ after Chalmers blocks $600m buyout
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More news: Mayne Pharma has confirmed to shareholders that the deal to be acquired by Cosette Pharmaceuticals for more than $600 million is “unlikely to proceed” following Treasurer Jim Chalmers’ decision to block the deal.
Mayne shares slumped 23% following an announcement from the Treasurer, before it entered a trading halt.
In a statement to the exchange, Mayne said it is “disappointed to inform shareholders that the [Foreign Investment Review Board] condition precedent to the Scheme will not be satisfied”. The company is currently “assessing its options and next steps” and will “keep the market informed as appropriate”.
Mayne also confirmed it was notified by Cosette shortly after market open that it had received “written notice” from FIRB that the Treasurer “has objected to the proposed scheme”.
It has also received a notice from Cosette under the Scheme Implementation Deed, regarding the failure of the FIRB condition and “asking the parties to consult in “good faith ... in relation to available alternatives”.
What they said: “Mayne Pharma wishes to thank its shareholders for their continued support,” the company said.
Mayne Pharma tanks 23% after Chalmers blocks Cosette buyout, enters trading halt
More news: Mayne Pharma entered a trading halt after sinking 23% following news that Treasurer Jim Chalmers will block its $672 million buyout by Cosette Pharmaceuticals.
Mayne said it will halt trading pending the release of a "material announcement" in relation to the collapsed acquisition.
The trading halt will remain in place until the earlier of the announcement or the start of trading on 25 November.
Chalmers blocks Cosette acquisition of Mayne Pharma
The news: Federal Treasurer Jim Chalmers has accepted the "very clear and unambiguous" recommendation by Foreign Investment Review Board (FIRB) to block Cosette Pharmaceuticals' acquisition of Mayne Pharma on national interest grounds.
ASX-listed Mayne has paused trading pending a further announcement.
The context: Chalmers said his decision is "entirely consistent" with the FIRB advice, which said the proposal would be contrary to Australia’s national interest.
Chalmers said he received "unequivocal advice" from Treasury and FIRB that no conditions could be put in place to adequately mitigate national interest risks, particularly unique risks to the supply of critical medicines.
That advice incorporated views from the Department of Health and Aged Care, the Therapeutic Goods Administration and the South Australian government.
"This is about doing what is necessary to protect Australia’s national interest, the security of our critical medical supply chains, local jobs and the local community," Chalmers said.
"The decision was not taken lightly and comes after months of careful and methodical deliberations. This robust process gave consideration to all available options, including whether any conditions could be applied to adequately mitigate national interest risks."
An ASX notice filed by Mayne on Thursday evening said that FIRB had rescheduled the court hearing to approve the scheme to take place at 3pm Sunday 23 November 2025.
US-based Cosette has been trying to get out of the deal for months, but its attempts to terminate the move were blocked by the NSW Supreme Court. Earlier this month Cosette warned that it intended to appeal the Supreme Court decision.
On Wednesday, The Takeovers Panel said that a threat made by Cosette to sell or close Mayne's South Australian factory if the suitor was forced to follow through the with the acquisition was "contrary to an efficient, competitive and informed market".
The panel ordered Cosette to agree to "any conditions reasonably required" by Chalmers with respect to the factory, "including conditions reasonably restraining its closure".
The sources: Treasury statement, ASX
