Pfizer and Allergan scrap US$160b "inversion" deal
[BENGALURU] US drugmaker Pfizer Inc and Ireland-based Allergan Plc formally announced that they were scrapping their US$160 billion merger, marking a big win for President Barack Obama who has been pushing to curb tax-slashing "inversion" deals.
The announcement followed the unveiling of new US Treasury rules on Monday aimed at curbing such deals. The merger would have allowed New York-based Pfizer to cut its tax bill by redomiciling to Ireland, where tax rates are lower.
A source familiar with the matter told Reuters on Tuesday that the deal would be terminated.
Pfizer said on Wednesday it had agreed to pay Allergan US$150 million for reimbursement of expenses associated with the deal.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
HCA beats first-quarter profit estimates on higher patient admissions
US FDA approves Pfizer’s gene therapy for rare bleeding disorder
EU toughens rules on Chinese fashion retailer Shein
Best World under fire from shareholders at AGM over dividends, director salaries
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years
Sheng Siong Q1 net profit up 9.3% on higher revenue