Zeneca merger threatens jobs, boosts shares - farmers weekly
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09 December 1998 ZENECA MERGER THREATENS JOBS, BOOSTS SHARES _BY FWI STAFF_ SHARES in Zeneca climbed this morning on expectations that the biotech company is about merge with Swedish
pharmaceuticals group Astra. But as many as 1000 British jobs could be lost if the merger goes ahead to create one of the worlds largest pharmaceuticals groups, worth about £42.4 billion.
Under the deal, Zeneca shareholders will own 53.5% of the new company. By 10.30am today (Wednesday), Zeneca shares in London had climbed £1.15 (+4.56%) to £26.35. Astra shares, which are
traded in Swedish Krona on the Stockholm stock exchange, climbed 13% to SEK171.00. Zenecas agro-chemical division accounts for about 30% of sales, but it “might look out of place” in the
new, enlarged company, says the _Financial Times_. There is also the problem of ironing out any overlap between the two individual companies. Zeneca chief executive Sir David Barnes told BBC
Radio 5 this morning that the new combined company would shed “no more than” 1000 jobs over the next three years if the deal goes through. The new companys head office would be in London,
but research and development headquarters would be in Sweden, Sir David said. Zenecas main research establishments in the UK at Manchester and Loughborough are expected to remain open.