Takeovers Panel orders Cosette not to close Mayne’s SA factory

The news: The Takeovers Panel has ordered Cosette Pharmaceuticals to agree to “any conditions reasonably required” by Treasurer Jim Chalmers with respect to Mayne Pharmaceuticals’ South Australian factory, “including conditions reasonably restraining its closure”.

The context: The Panel said that a threat made by Cosette to sell or close the factory if they were forced to follow through with the acquisition of Mayne “is contrary to an efficient, competitive and informed market".

The US-based private equity-backed suitor has been trying to get out of the deal for months, but its attempts to terminate the deal were blocked by the NSW Supreme Court. Earlier this month Cosette warned that it intends to appeal the Supreme Court decision.

The Panel’s orders published on Wednesday evening said: “While the decision is specific to its facts, when considering the public interest, the Panel took into account the concerns raised by [Mayne] regarding the ability for bidders to use a change of intentions or similar strategies to potentially defeat transactions in a way that is contrary to the efficient, competitive and informed market principles.”