AstraZeneca and Bristol-Myers: when Big Pharma isn’t big enough
Sheer mass helps when enlarged balance sheets allow for bigger bets on potential blockbuster drugs
AstraZeneca, a British pharmaceutical company, is reportedly considering a massive merger with its US rival, Bristol Myers Squibb, according to a newspaper report. The deal, if finalized, could be one of the largest in business history, combining two companies currently valued at nearly $400 billion on the stock market, or around €345 billion.
Sources cited by the Financial Times reported that discussions between the two companies have taken place in recent months, though a decision on the merger could come soon or be delayed or even fail. The transaction would create one of the world's largest pharmaceutical companies, with AstraZeneca and Bristol Myers Squibb each valued at around $200 billion and $133 billion respectively on the stock market.
AstraZeneca's CEO Pascal Soriot aims to use the merger to further expand the company's presence in the US market. The UK-based company, the second-largest listed company by market capitalization in Britain, upgraded its New York listing in June, a move seen as a setback for London as a financial hub.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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