Pfizer to buy Allergan in $160 billion deal to create world’s biggest drugmaker
Pfizer, the maker of Viagra and Lipitor, has struck a deal to buy Botox-maker Allergan in a transaction valued at about $160 billion.
The complex deal, the biggest ever in the healthcare sector, will allow Pfizer to shift its legal base to Ireland. Pfizer’s chief executive Ian Read will be CEO of the combined company, while Allergan CEO Brent Saunders will be chief operating Officer, the companies said today.
New York-based Pfizer and Allergan – headquartered in Ireland – said Allergan shareholders will receive 11.3 shares in the combined company for each share held. The deal values Allergan’s shares at $363.63 each, compared with the stock’s close of $312.46 on Friday. Pfizer stockholders will have the option of receiving one share of the combined company for each of their Pfizer shares or receive cash, provided the aggregate amount of cash to be paid is not less than $6 billion or more than $12 billion.
The tax aspect of the deal has been seen as critical. The US corporate tax rate of 35% is among the world’s highest, and compares with Ireland’s rate of 12.5%. Upon the closing of the transaction in the second half of 2016, the companies said the combined company was expected to maintain Allergan’s Irish legal domicile.
For More please click:http://www.reuters.com/article/2015/11/24/us-allergan-m-a-pfizer-idUSKBN0TB0UT20151124