How Britain’s No. 10 intervened in the AstraZeneca-Bristol merger
The scuttled pharma deal triggered UK government worries.
In August, British officials expressed concerns over the planned $400 billion merger between AstraZeneca and Bristol Myers Squibb, which could have been the largest-ever merger. Varun Chandra, the UK's top business envoy and adviser to Prime Minister Andy Burnham, called AstraZeneca CEO Sir Pascal Soriot to express the significant problem the deal would pose for the government, according to sources.
The call followed a Financial Times report on the merger talks, which saw AstraZeneca shares plummet 9% in London, fueling investor backlash against the deal. The proposal "makes neither strategic nor financial sense," said one portfolio manager and shareholder in both companies. Despite the potential for British companies to relist in the US, the government ultimately failed to prevent the deal from collapsing, with AstraZeneca and Bristol ultimately deciding against the merger.
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