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Zeneca is to merge with Astra of Sweden in a £21bn deal, and the new group will have a London headquarters with the main R&D centre being in Sweden.

Zeneca is planning to expand its pharmaceutical headquarters in Alderley Park, Cheshire, with the creation of up to 300 jobs.

Zeneca is to invest £50m in the development of new wheat varieties in collaboration with the John Innes Centre, and a new laboratory will be set up in Norwich.

Zeneca is building a £2m pilot fermentation plant at its Billingham site that will act as trouble-shooting facility in the manufacture of drugs.

Zeneca is planning a £11m investment in the expansion of facilities to produce its Zomig migraine treatment, and a new plant will open in Macclesfield early next year.

Zeneca is acquiring Mogen International, the Dutch plant biotechnology concern, for £46m, and expects to benefit from Mogen's expertise in fungal control.