Pfizer in talks to aquire Allergan
Pfizer is in talks to acquire Allergan in a $370 to $380 deal for each Allergan share, the global drug industry’s largest ever.
While negotiations have made progress in recent days, an agreement is not imminent and its timing remains uncertain following the Treasury’s disclosure that it would seek to tighten the rules on inversions.
The development throws Ireland’s tax regime back under unfavourable international scrutiny, at a time when the country awaits a heavy-hitting ruling from Brussels.
Ireland is a common destination for inversions as US companies try to escape US taxation.
US representative Sander Levin said in a statement: “The fact that American companies, including Pfizer, continue to pursue inversions makes clear that additional steps are needed to stop this trend.” He urged Congress to “get off the sidelines and take action to change the law to stop these tax-motivated inversions.”
For months tax experts have speculated about what could come next. Possible steps might include tightening the rules on two strategies related to inversions, tax experts said: So-called earnings stripping and “skinny down” distributions.