The creation of a new global drugs industry giant cleared a major hurdle yesterday when the US Federal Trade Commission (FTC) waved through plans for the $36 billion (€33 billion) merger of Sweden's Astra with Britain's Zeneca. The future of the combined group, which will leap to the top of global rankings for prescription drugs companies based on 1998 sales figures, now lies in the hands of Astra shareholders who must give their blessing by the end of the month.

AstraZeneca will nose ahead of current global leaders Novartis, Merck and Glaxo Wellcome based on current sales, with a combined 4.3 per cent share of the world's $251 billion prescription drug market, according to IMS Health data.

Despite its potential size, the powerful FTC waved through the creation of the new grouping with a minimum of conditions, reflecting the group's weaker position in the key US market and lack of overlap in major drug areas.