Pfizer Ends Pursuit of AstraZenecaBy
Pfizer issued a statement on May 26, 2014 to announce that it does not intend to make an offer for AstraZeneca. Pfizer made the announcement in line with UK takeover rules which required the company to either make a formal offer to AstraZeneca or to not make an offer by May 26th following Pfizer’s non-binding proposal to combine the two companies in a deal valued at approximately $119 billion.
On May 18, 2014, Pfizer announced that it had made a final proposal to AstraZeneca to make an offer to combine the two companies. Following the AstraZeneca board’s rejection of the proposal, Pfizer has now announced that it does not intend to make an offer for AstraZeneca.
“We continue to believe that our final proposal was compelling and represented full value for AstraZeneca based on the information that was available to us. As we said from the start, the pursuit of this transaction was a potential enhancement to our existing strategy. We will continue our focus on the execution of our plans, bringing forth new treatments to meet patients' needs and remaining responsible stewards of our shareholders' capital,” said Ian Read, Chairman and CEO of Pfizer, in company statement.
In response, AstraZeneca confirmed Pfizer’s decision not to pursue AstraZeneca further and emphasized its interest in remaining a stand-alone company.
Leif Johansson, Chairman of AstraZeneca, said in a company statement “We note Pfizer’s confirmation that it no longer intends to make an offer for AstraZeneca. We welcome the opportunity to continue building on the momentum we have already demonstrated as an independent company. We are fully focused on the delivery of our strategy. We have 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,” he said. “The Board is grateful to Pascal [Pascal Soriot, CEO of AstraZeneca], his management team and to all our employees for their dedication and focus over a period of uncertainty. AstraZeneca has a culture of innovation, with science at the heart of everything we do. I believe this will create significant value for our shareholders, employees and patients who will benefit from our life-changing medicines.”
See related stories: “Plus or Minus? Examining AstraZeneca’s Rejection of Pfizer’s $119 Billion Acquisition Proposal”
“Pfizer and AstraZeneca: What Would a Combined Company Offer?”
Source: Pfizer and AstraZeneca