Co to Terminate Allergan Merger
Pfizer has decided to terminate its $160 billion merger agreement with Allergan, known for its popular Botox injections. The decision follows tough rules proposed by the US government that will make it difficult for companies to shift their domicile to take advantage of a lower tax base.
Pfizer and Allergan had agreed to merge last November, creating a company with a stock market value of over $300 billion. Ever since the announcement of the deal, Pfizer had faced flak from US politicians, mainly presidential candidates, for its “inversion” deal. They charged the company of moving its profits overseas. Bernie Sanders, Hillary Clinton and Donald Trump had all slammed Pfizer for its plan to move its tax address to Dublin. Wall Street analysts noted the termination will bring uncertainty for the future plans of both the drug makers, while adding it may trigger a fresh wave of mergers in the pharmaceutical industry. —Our Bureau