Ireland-based drugs giant Shire is selling its oncology business to France’s Servier in a deal worth $2.4 billion. The sale comes just as Japan’s Takeda Pharmaceutical was reported to be seeking funds and preparing a takeover bid for Shire.

Shire said it had initiated a sale of its oncology business in December, and the divestment was unrelated to a potential takeover bid. It added that it may sell other assets that it sees as not central to its business.

“While the oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy,” said Flemming Ornskov, Shire’s CEO. “We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets.”

Ornskov added that the board would consider returning the proceeds of the sale to shareholders through a shareholder-approved share buyback, after the current offer period regarding Takeda’s possible offer for Shire comes to an end. Under UK takeover rules, Takeda has until Apr. 25 to launch a bid.

Shire’s oncology business, which generated revenues of $262 million in 2017, includes Oncaspar, a component of multi-agent treatment for acute lymphoblastic leukemia (ALL), and ex-US rights to Onivyde, which is part of a treatment for metastatic pancreatic cancer post gemcitabine-based therapy. The portfolio also includes Calaspargase Pegol, which is currently under US review for treating ALL, as well as early-stage immuno-oncology pipeline collaborations.

The transaction has been approved by Shire’s board of directors and is expected to close in the second or third quarter of 2018.

Servier said the acquisition will help it achieve its ambition of becoming a global key player in oncology. “This acquisition allows us to establish a direct commercial presence in the United States, the world's leading pharmaceuticals market, and to strengthen our portfolio of marketed products in the territories where Servier is already present,” said Olivier Laureau, Servier group president.

Oncology is one of the key areas identified by Takeda as a driver for acquiring Shire, along with gastroenterology and neuroscience. Analyst Peter Welford at Jefferies said in a note that the deal should boost Shire’s negotiating position on asking price in the current offer period with Takeda, adding that there are still compelling reasons for a deal.