AstraZeneca, Bristol Myers Squibb in talks over $400bn tie-up - report

(Sharecast News) - AstraZeneca is reportedly in talks to combine with US rival Bristol Myers Squibb in a deal that would create one of the world's biggest pharmaceutical groups, valued at nearly $400bn. According to the Financial Times, citing people familiar with the matter, the companies have held discussions about a tie-up in recent months. It was understood the talks could yield a deal in the near future but may be delayed or fall apart.

AstraZeneca has a market value of about £196bn ($264bn), while BMS is worth roughly $133bn, the FT noted. A combination of the two would be among the biggest pharmaceutical deals of all time, and propel the combined entity to become the world's fourth-largest drugmaker by market capitalisation. The talks come after AstraZeneca completed a direct listing in New York in June.

The FT said the exact structure of any deal could not immediately be determined, but would probably require both cash and shares. AstraZeneca declined to comment and BMS did not immediately respond to requests for comment from the FT.

At 0815 BST, AstraZeneca shares were down 6.9% at 11,756p.