When first learning of a proposed acquisition, it can be easy to subconsciously slip over the word "proposed" as linguistic fodder. But although many acquisitions earn regulatory approval relatively quickly, some trip up enough alarm bells among trade authorities to significantly slow closing or to block it altogether.
The proposed merger of Illumina (NASDAQ: ILMN) and Pacific Biosciences (NASDAQ: PACB) is the latest reminder that no acquisition is guaranteed. After drawing the scrutiny of the Competition and Markets Authority (CMA) of the U.K. and the Federal Trade Commission (FTC) of the U.S., it's probably time for investors to give up hope that the transaction will go through.
What happens next will be even more important to the future of both companies.