JAPAN (OBSERVATORY) – Japanese stocks fell on Wednesday on weak performance for their US counterpart, which weighed on appetite for risk, while Takeda Pharmaceutical Industries, which stumbled after the company improved its offer to acquire Shire, tumbled to 46 billion pounds ($ 64 billion).
The benchmark Nikkei <.N225> was down 0.3 percent at 22,215.32.
Takeda shares fell 7 percent after investors expressed concern over the company’s ability to fund the cash and stock offer.
Shire said in a statement that it had agreed to extend the deadline for completion of the deal talks to May 8 instead of Wednesday to provide an opportunity to confirm further technical scrutiny and increase the value of the offer.
Construction equipment makers saw a sell-off after Caterpillar slumped on Tuesday on concerns that rising material costs could cut profit margins after US President Donald Trump’s administration imposed tariffs on steel imports.
Komatsu fell 3.4 percent, while Hitachi Construction Equipment fell 3.5 percent.
The broader Topix index <.TOPX> was down 0.1 percent at 1,767.73.