$150b merger deal between Pfizer and Allergan soon
Published: November 23, 2015 3:35 pm
23 November 2015, Nirapad News: Pfizer Inc. and Allergan PLC are on the cusp of reaching a $150 billion deal that would create the world’s largest drugmaker by sales, The Wall Street Journal reported Sunday, citing unnamed people familiar with the matter.
According to the newspaper, terms of the deal include 11.3 Pfizer shares for every Allergan share, along with a small cash component. The boards of each company were expected to approve the agreement Sunday and it could be announced Monday.
Pfizer and Allergan representatives declined to comment.
If a deal is reached, it would be the biggest ever merger in health care and the largest “inversion” ever – that’s a tax-saving maneuver in which a U.S. company reincorporates in a country with a lower corporate tax rate. Inversions have become a hot political topic, raising the ire of lawmakers in Washington and public interest groups.
Botox maker Allergan is based in Ireland but runs much of its operations out of Parsippany, New Jersey.
To help secure that lower tax rate, the deal will be technically structured as a reverse merger, with Allergan buying New York-based Pfizer, according to the newspaper’s report.