AstraZeneca shares plunge 9%, wiping £18bn off market value, on report of $400bn merger talks with Bristol Myers Squibb

Published Aug 2, 08:20 PM UTC

AstraZeneca shares dropped 9% on Monday, wiping £18bn off its market value, after reports emerged that the British pharmaceutical giant held talks about a potential $400bn (£300bn) mega-merger with US rival Bristol Myers Squibb. If completed, the deal would create one of the world's largest drugmakers but faces significant hurdles. Analysts expressed skepticism, calling the merger high-risk and questioning its strategic logic. Jefferies analysts said AstraZeneca does not need financial engineering, while Union Investment's portfolio manager Markus Manns stated the combination 'does not make strategic or financial sense.' The deal would also likely face intense scrutiny from US competition regulators and the Trump administration, given both companies' large cancer treatment portfolios. The news raises further concerns about AstraZeneca's ties to Britain, as CEO Pascal Soriot has previously described the company as 'very American' and recently upgraded its New York listing. AstraZeneca has insisted it intends to remain headquartered in Cambridge and retain its London listing.