Mayne Pharma Group Limited shares plunge after Treasurer signals bid rejection

Highlights:

• Mayne Pharma Group Limited (ASX: MYX) shares plunged 32.3% at the time of writing after Treasurer Jim Chalmers signalled he would block US-based Cosette’s A$672 million takeover of the company.
• The Treasurer cited national interest and economic concerns, warning the deal could harm Australia’s manufacturing sector and cost hundreds of local jobs.
• The decision follows a court ruling in Mayne’s favour, which had earlier stopped Cosette from terminating the acquisition — but political opposition now threatens to derail the deal entirely.

Takeover torpedoed — markets react

Mayne Pharma Group Limited (ASX: MYX) tumbled after Treasurer Jim Chalmers indicated he would move to block US suitor Cosette’s A$672 million takeover, saying the deal would harm Australia’s economic and jobs interests. At the time of writing, Mayne Pharma shares had fallen about 32% following the announcement.

Court victory but political hurdle remains

The dramatic move comes after a NSW court this month stopped Cosette from unilaterally terminating the agreement, leaving the acquisition dependent on Foreign Investment Review Board (FIRB) clearance — and now the Treasurer’s intervention. The court ruling earlier had buoyed sentiment, but the government’s concerns over the buyer’s stated intentions have swung momentum back to the downside.

Jobs and manufacturing at centre of controversy

Federal and South Australian officials flagged fears Cosette planned to close Mayne’s Salisbury South manufacturing facility — a move that officials say could cost around 200 direct jobs and hundreds more indirectly, and shave tens of millions from state output. Those job and supply-chain concerns were central to FIRB’s objections and the Treasurer’s public stance. Mayne Pharma has denied plans to close the site and says it has been excluded from FIRB discussions.

What this means for shareholders and the deal

Investors face uncertainty: legal wins don’t guarantee regulatory approval, and political intervention can scupper transactions even after court rulings. Market coverage of the development is widespread — including Reuters, The Australian Financial Review and multiple Australian outlets — underscoring the national interest angle that has reshaped the takeover’s prospects.

Bottom line: a court ruling that once revived the deal now collides with a political decision focused on jobs and national interest — leaving Mayne Pharma’s fate and shareholders in limbo.

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