NEW YORK (GenomeWeb News) – BGI-Shenzhen and Complete Genomics announced Friday evening that the Committee on Foreign Investment in the United States has cleared BGI's proposed acquisition of Complete Genomics.
The review by CFIUS is customary when US firms are being acquired by foreign parties. Complete Genomics had previously said that it anticipated the review to be completed by the end of this year and that it expects to complete the transaction with BGI in the first quarter of 2013.
BGI made its nearly $118 million bid in September, and the proposed deal is still under review by the US Federal Trade Commission. Illumina, which has made a competing bid of nearly $124 million to acquire Complete Genomics, had suggested in November that CFIUS may not clear the deal with BGI and urged Complete Genomics to accept its bid instead. Complete Genomics has rejected Illumina's overtures, however, saying that it doesn't believe a combination of the two firms would pass FTC review.
In addition to the CFIUS review being completed, BGI-Shenzhen also said Friday that it has extended its tender offer for all of the outstanding common stock of Complete Genomics to midnight EST on Jan. 7. The offer had been scheduled to expire on midnight today.
BGI said that as of the close of business on Dec. 28 approximately 17.8 million shares representing around 50 percent of Complete Genomics' common stock had been validly tendered and not withdrawn.