Illumina’s Deal to Buy Cancer-Test Developer Is Blocked by the EU

BRUSSELS—The European Union blocked Illumina acquisition of cancer-test developer Grail Inc., putting a $7.1 billion merger into jeopardy just days after a U.S. administrative law judge allowed it to go forward.

The fate of the acquisition has emerged as an early test case for regulators in the U.S. and EU who have vowed to scrutinize mergers more closely after years allowing many corporate combinations.

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