AstraZeneca tilts towards New York with dual London presence at risk

The Prime Minister recently convened with Sir Pascal Soriot, the chief executive of AstraZeneca, at Downing Street to discuss the government’s efforts to bolster UK capital markets. This meeting came days before the FTSE 100 pharmaceutical giant unveiled plans for a direct listing on the New York Stock Exchange, marking a significant shift towards the world’s most lucrative pharmaceutical market while maintaining listings and tax residency in London.

Sir Keir Starmer, along with Chancellor Rachel Reeves, hosted Soriot as part of ongoing attempts to reassure City stakeholders and mitigate mounting concerns about AstraZeneca’s long-term commitment to Britain. The engagement coincided with President Trump’s state visit, during which Soriot attended a state banquet at Windsor Castle and a gathering of business leaders at Chequers. While these discussions were welcomed by AstraZeneca, sources indicate they did not influence the company’s strategic decision.

This week, AstraZeneca confirmed its intention to harmonise share listings across London, Stockholm, and New York. The group states that listing in the United States will enable access to a broader pool of capital and investors, given the size and liquidity of American financial markets. The move is underpinned by a previously announced $50 billion investment in the US by 2030, signifying an increased reliance on American opportunities for growth and innovation.

Although the company pledges to retain its London listing and domicile, this strategic pivot arrives amid a period of notable tension. AstraZeneca recently paused a £200 million expansion of its Cambridge headquarters, citing disputes over NHS drug pricing schemes. Industry observers note the company’s growing American identity and note an intensifying debate over the competitiveness of London’s markets as other major firms consider similar moves.

As part of the transition, AstraZeneca’s London shares will be traded as depositary interests, which are exempt from UK stamp duty. This change could dent Treasury revenues by an estimated £170 million to £200 million, with the company responsible for roughly 7 per cent of the FTSE All-Share index. While the London Stock Exchange and government welcomed confirmation of AstraZeneca’s ongoing headquarters and tax residence in the UK, the saga has spotlighted the urgent need for reforms to keep the City competitive amid global capital realignment.

Shareholders are set to vote on the proposals in November, a key test of sentiment towards globalisation versus national market loyalty. Policymakers and market participants will watch closely, aware that AstraZeneca’s decision could signal broader patterns for UK-listed blue chips exploring transatlantic ambitions.