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Pfizer chief says AstraZeneca takeover would be 'win-win for society' Pfizer's promises to protect jobs are meaningless, says Labour
(about 1 hour later)
The boss of US drug giant Pfizer has said the firm's proposed £60bn takeover of AstraZeneca is a "win-win for society" amid growing concern that the deal could cause the loss of thousands of highly-skilled jobs and undermine the UK's science base. Pfizer's promises to protect British jobs are meaningless, shadow business secretary Chuka Umunna has claimed.
Pfizer's chairman and chief executive, Ian Read, said the cost-cutting deal would "liberate the balance sheet and tax" of both companies, after David Cameron insisted the American firm should provide more assurances about its commitment to Britain. The boss of the US drug giant, Ian Read, said that the firm's proposed £60bn takeover of AstraZeneca would be a "win-win for society." But Umunna responded, rubbishing Pfizer's assurances to the government.
"The assurances Pfizer has given ministers are not worth the paper they are written on, given that Pfizer has since refused to rule out breaking up the AstraZeneca business and selling off parts of it in the future if this takeover proceeds."
He said: "The government could act immediately to work to put in place a stronger public interest test encompassing cases with an impact on strategic elements of our science base and seek a proper, independent assessment of the potential takeover as Labour has called for. Instead, ministers have sat on their hands."
There has been growing concern that the takeover could lead to the loss of thousands of highly-skilled jobs and undermine the UK's science base.
Following demands for more assurances from David Cameron, the firm's chairman and chief executive took to the internet to post a series of videos on Pfizer's website defending the proposed deal. Read said the cost-cutting deal would "liberate the balance sheet and tax" of both companies.
AstraZeneca has so far resisted approaches from its rival, but Pfizer executives have not given up hope of reaching a deal, which could be the biggest foreign takeover of a British company.AstraZeneca has so far resisted approaches from its rival, but Pfizer executives have not given up hope of reaching a deal, which could be the biggest foreign takeover of a British company.
Pfizer has promised to keep at least 20% of the combined companies' research and development workforce in the UK for at least five years and said it will base its European headquarters in Britain.Pfizer has promised to keep at least 20% of the combined companies' research and development workforce in the UK for at least five years and said it will base its European headquarters in Britain.
But Cameron this week told the Commons that although the assurances were encouraging he was still not satisfied and wanted the firm to do more.But Cameron this week told the Commons that although the assurances were encouraging he was still not satisfied and wanted the firm to do more.
In a series of videos posted on Pfizer's website, Ian Read said the proposed takeover was motivated by "three components of value", including combining some of the companies' products and improving efficiency.In a series of videos posted on Pfizer's website, Ian Read said the proposed takeover was motivated by "three components of value", including combining some of the companies' products and improving efficiency.
"Governments are all around the world pressurising the industry to produce products of higher value and with more productivity, at lower cost," he said. "One way of doing that is to consolidate and is to take out overlapping functions.""Governments are all around the world pressurising the industry to produce products of higher value and with more productivity, at lower cost," he said. "One way of doing that is to consolidate and is to take out overlapping functions."
"That will allow us to have great cash flow and together be a stronger company, and together be able to invest in research, and in development, and with the scientific community," he added."That will allow us to have great cash flow and together be a stronger company, and together be able to invest in research, and in development, and with the scientific community," he added.
"I think both companies have strategies that are aimed at growing and aimed at meeting patients' needs."I think both companies have strategies that are aimed at growing and aimed at meeting patients' needs.
"I believe that by combining these two companies we strengthen those possibilities. We strengthen the ability to bring products to patients. We strengthen the financial aspects of the company."I believe that by combining these two companies we strengthen those possibilities. We strengthen the ability to bring products to patients. We strengthen the financial aspects of the company.
"We can invest in science. I see this as a win-win for society, a win-win for shareholders, and a win-win for stakeholders.""We can invest in science. I see this as a win-win for society, a win-win for shareholders, and a win-win for stakeholders."
Read and the AstraZeneca chief executive, Pascal Soriot, are due to be grilled by the business, innovation and skills committee on Tuesday, before returning to the House of Commons on Wednesday to be quizzed by MPs on the science and technology committee.Read and the AstraZeneca chief executive, Pascal Soriot, are due to be grilled by the business, innovation and skills committee on Tuesday, before returning to the House of Commons on Wednesday to be quizzed by MPs on the science and technology committee.
The science committee will also question science minister David Willetts about the government's position.The science committee will also question science minister David Willetts about the government's position.
George Osborne said Pfizer had made assurances about its plans for jobs and science in the UK and he would take a "hard-nosed" approach to any deal. He told BBC Radio 4's Today programme: "We have to make sure those are real promises that we can hold them to."George Osborne said Pfizer had made assurances about its plans for jobs and science in the UK and he would take a "hard-nosed" approach to any deal. He told BBC Radio 4's Today programme: "We have to make sure those are real promises that we can hold them to."
He said: "I'm also, on the specifics, prepared to get in the room and have a hard negotiation with very large companies and be very, very hard-nosed about what we want to deliver in terms of good British science and good British jobs."He said: "I'm also, on the specifics, prepared to get in the room and have a hard negotiation with very large companies and be very, very hard-nosed about what we want to deliver in terms of good British science and good British jobs."
The chancellor said it would be extraordinary not to have engaged with Pfizer and said it was a massive error of judgment by the Labour leader, Ed Miliband, not to talk to the company.The chancellor said it would be extraordinary not to have engaged with Pfizer and said it was a massive error of judgment by the Labour leader, Ed Miliband, not to talk to the company.
"My only interest in the potential bid that Pfizer might make for AstraZeneca is securing good British jobs and good British science and that is how I will judge any commercial arrangement. That is the public interest in this matter.""My only interest in the potential bid that Pfizer might make for AstraZeneca is securing good British jobs and good British science and that is how I will judge any commercial arrangement. That is the public interest in this matter."