© Reuters. FILE PHOTO: A company logo is seen at the AstraZeneca website in Macclesfield, Britain, May 11, 2021. REUTERS/Phil Noble/File Photo
(Reuters) – The Financial Times reported Sunday that drugmaker AstraZeneca (NASDAQ) is drafting a plan to spin off its China business, and listing a separate unit in Hong Kong is being seen as an option.
Ultimately, the report said, citing people familiar with the matter, that a breakup may not happen, with one of them saying that a listing of the entity in Shanghai is also possible.
The Chinese president said in May that the company will strive to be a national company in China that “loves the Communist Party.” Last year, the country accounted for 13% of AstraZeneca’s total sales, and the company is China’s largest drugmaker.
The Financial Times report said the split could protect AstraZeneca from tensions between China and other global powers, while the company retained control of the business.
She added that the idea has been around for years but has been sidelined recently due to the global downturn in biotechnology.
AstraZeneca said it did not comment on “rumors or speculation about future strategy or M&A”.