Pfizer walks away from £69bn merger with AstraZeneca

Published: 27-May-2014

US giant says it will not make an offer for its UK rival


US drugs giant Pfizer has decided not to pursue its £55 a share, £69bn takeover offer for AstraZeneca.

'Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer for AstraZeneca,' the company said.

AstraZeneca's Chairman Leif Johansson said the company would 'continue building on the momentum we have already demonstrated as an independent company'.

He added that AstraZeneca has 'attractive growth prospects and a rapidly progressing pipeline. In the coming months, we anticipate positive news flow across our core therapeutic areas, which underpins our confidence in the long-term prospects of the business.'

Pfizer had until 26 May to make any further move under a strict timetable allowed for takeovers of public companies.

AstraZeneca could reach out to Pfizer after three months and Pfizer could make a new bid in six months' time, whether invited back by AstraZeneca or not, according to these UK takeover rules.

Ian Read, Chairman and CEO of Pfizer said the company continues to believe that its final proposal 'was compelling and represented full value for AstraZeneca based on the information that was available to us'.

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