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Pfizer offers reassurances to David Cameron over AstraZeneca bid

The Pfizer chairman has written to PM David Cameron offering reassurances over the US drugmaker’s planned takeover of AstraZeneca, and has raised their offer for the company, reportedly to over £63 billion.

In the letter, the chairman commits to maintaining a UK base for the new company, ensuring the appointment of at least two AstraZeneca senior staff to the new company’s board, and maintaining jobs and tax residency in Britain.

This is in reponse to MPs plans to investigate the drugmakers takeover of British, North-West based rival to ensure scientific research and jobs are protected.

Members of the parliamentary business, innovation and skills committee are worried that the deal, which would be the biggest-ever foreign acquisition of a British company, could threaten the country’s strategic interests.

Ian Read, today sent the following letter to David Cameron MP, with respect to Pfizer’s commitment to the U.K. and its life sciences agenda following the company’s proposal made to AstraZeneca on May 2, 2014.

In the letter he wrote: “I am writing to you to address the concerns of the UK Government and science community and your desire to have firm and enduring assurances from us about our commitment to the UK and its life sciences agenda.

“We believe the industrial logic for a combination between Pfizer and AstraZeneca is compelling.

“Ultimately, establishing the world’s largest research-based pharmaceutical company in the UK, together with the commitments made in this letter represent a strong indicator of the incentives that your Government has created to attract successful business to the UK.

“We recognize that our approach may create uncertainty for the UK Government and scientific community given the strategic importance of life sciences to the Government’s Industrial Strategy and the significance of the transaction.

“We would therefore like to assure the Government of our long term commitment to the UK where Pfizer already employs a significant number of colleagues across Research, Commercial, and Administrative roles

“Our Board has endorsed these commitments in a formal Pfizer Board resolution and will publish a statement describing these promises to the British public.

“ In reflection of the binding nature of these commitments, we are including this letter in our public announcement issued pursuant to the UK Takeover Code regarding the possible combination.

This was posted in Bdaily's Members' News section by Clare Burnett .