Co to Ter­mi­nate Al­ler­gan Merger

The Economic Times - - Companies -

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

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