Britain's AstraZeneca is reportedly in discussions to merge with U.S. rival Bristol Myers Squibb in a deal that would create a pharmaceutical giant valued at nearly $400 billion. If completed, the transaction would be one of the largest in the industry's history and would form the world's fourth-largest drugmaker by market value.
The combination would create a company with the deepest oncology portfolio in the industry, significantly reshaping the competitive landscape for cancer treatments. However, analysts expressed surprise and noted that any potential deal would face intense scrutiny from antitrust regulators due to the significant overlap in their drug portfolios.
Initial market reaction was sharp and divergent. AstraZeneca's shares fell more than 7% in London trading following the news, while Bristol Myers Squibb's shares jumped nearly 6% in U.S. pre-market activity. The talks are reported to be in the early stages.