Abbott Laboratories Advances Major Acquisition Amid Market Scrutiny

Abbott secures shareholder approval and arranges $20B debt financing to acquire Exact Sciences, aiming to expand its diagnostics footprint amid cautious market outlook.

Abbott Laboratories is moving decisively to finalize its planned multi-billion dollar takeover of Exact Sciences. The medical device giant has secured critical shareholder approval and is arranging substantial debt financing, setting the stage for a significant expansion in diagnostics. However, this ambitious growth strategy is unfolding against a challenging market backdrop that has already prompted analysts to adjust their outlooks.

Shareholder Approval and Debt Financing

The path for Abbott's strategic expansion into diagnostics is now clear. On February 20, 2026, more than 99% of Exact Sciences shareholders voted in favor of the acquisition offer. To fund the purchase price of $105 per share, Abbott is preparing to tap the capital markets. Reports indicate the corporation plans a bond issuance of approximately $20 billion.

Pending the fulfillment of customary closing conditions, the transaction is expected to be completed in the second quarter of 2026. In a notable side detail, while the acquisition itself received overwhelming support, shareholders of the target company rejected a non-binding proposal related to board compensation for the merger.

Market Analysts Weigh In

Despite this strategic progress, expert evaluation of Abbott's stock remains cautious. The equity has lost roughly 7.7% of its value since the start of the year. In early February, Barclays analyst Matt Miksic reduced his price target from $169 to $142, though he maintained an "Overweight" rating on the shares.

This adjustment was prompted by Abbott's fourth-quarter 2025 results, which revealed particular softness in its Nutrition business, weighing on overall revenue. Market observers are now anticipating a recovery in both the Diagnostics and Nutrition segments over the course of 2026.

Steady Dividends and Governance

Even with this major acquisition underway, the company is maintaining its commitment to shareholder returns. The board declared a quarterly dividend of $0.63 per share, payable on May 15, 2026. This continues a history of over 50 years of consistent dividend increases. Concurrently, Abbott is streamlining its governance: the size of its board of directors will be reduced from 13 to 12 members, effective April 24, 2026.

Investor focus now shifts to the second quarter of 2026. Assuming the Exact Sciences deal closes smoothly as planned, Abbott will need to demonstrate that the increased debt load from the $20 billion financing is justified by the anticipated synergies and long-term gains in the diagnostics market.