$160bn Allergan and Pfizer merger deal falls through
The tie-up would have been the largest inversion deal in corporate history, a tax-saving manoeuvre in which a US company reorganises in another country with a lower corporate tax rate. The plan was for the combined business to carry the Pfizer name and be legally domiciled in Ireland while retaining a global operational headquarters in New York. In connection with the termination of the merger agreement, Pfizer has agreed to pay Allergan $150mi (£104m) for reimbursement of expenses associated with the transaction.
Allergan’s chief executive and president Brent Saunders said, “While we are disappointed that the Pfizer transaction will no longer move forward, Allergan is poised to deliver strong, sustainable growth built on a set of powerful attributes. Leading therapeutic franchises with strong brands across seven therapeutic areas provide the foundation for continued strong growth in 2016 and beyond. Our pipeline is one of the strongest in the industry, loaded with 70 mid-to-late stage programs including 14 expected approvals and 16 regulatory submissions in 2016 alone. Allergan is focused on delivering growth from an efficient operating structure while also being committed to investing in R&D through our open science model.”
