US drug manufacturer Pfizer has made a final offer of £69.3bn for British firm AstraZeneca.
Pfizer released a statement saying this figure was final and would not be increased.
The firm added it would not make a hostile bid directly to AstraZeneca shareholders and would only go ahead with the offer under the approval of AstraZeneca’s board.
The cash element of the bid has been raised to 45%.
Under the offer, AstraZeneca shareholders will receive 1.747 shares in the company for each of their shares and 2,476p in cash.
On 2 May, AstraZeneca refused a cash-and-stock approach worth £50 a share.
As part of the deal, Pfizer is looking to create the world’s biggest pharmaceutical company, with headquarters in New York and a tax base in the UK.
Pfizer CEO Ian Read said:
“After the acquisition, any product that is important, that is close to patients … within 30 days we would probably do a review, we would ring-fence any important products and they would continue to be developed.
“There is absolutely no truth to any comment that some products of (a) critical nature would be delayed getting to patients. If anything we would accelerate that to patients.”
Mr Read also ensured 20% of new research and development would be based in the UK.
However the deal has already been rejected by AstraZeneca. The company’s chairman Leif Johansson said Pfizer’s pursuit had been “fundamentally driven” by the corporate financial benefits. “Pfizer has failed to make a compelling strategic, business or value case,” he added.