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Pfizer will not continue plans to buy AstraZeneca for now

Pfizer was in the process of trying to purchase another drug company, AstraZeneca, but those plans appear to have come to a halt for now. The company had made an offer of $119 billion, but that offer was rejected. This meant that Pfizer did not have long to decide if the company should withdraw its interest or if it should put out a firm offer for the drug company. Ultimately, the second was decided upon.

This does not necessarily mean that a merger between the two is off the table forever. If Pfizer is still interested in buying a business like AstraZeneca, and AstraZeneca then asks for another offer in 90 days, they can make one. If that offer is not requested, they have to wait at least six months before they can make one on their own. This is all in accordance with law in the United Kingdom.

The failure of this merger could have big implications for workers who are part of the AstraZeneca operations in Maryland and Delaware. There are around 2,600 employees in Delaware right now for the drug company -- which had as many as 5,000 back in 2007 -- but cuts were being made to bring this down to 2,000.

Officials in both Delaware and Maryland had been asking what a merger would mean for all of the people with jobs in their states. The executives at Pfizer had said that the Maryland jobs were still important to them and the company, but they did not make the same comments about Delaware.

Anyone who is employed in this industry should keep a close eye on this merger. It could come back up in as little as 90 days or six months, and it may have a large impact on the industry in the United States.

Source: Delaware Online, "Pfizer ends latest push to purchase AstraZeneca" No author given, May. 27, 2014

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