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