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