Pfizer pulls out of $160bn merger with Allergan
Pfizer has agreed not to go ahead with its proposed $160 billion merger with Dublin-based drugs manufacturer Allergan, in a major victory to US President Barack Obama’s drive to stop tax-dodging corporate mergers.
Pfizer’s board is reported to have voted last night to halt the merger with the Botox manufacturer.
While the new rules did not name Pfizer and Allergan, one of their provisions targeted a specific feature of their merger – Allergan’s previous history as a major acquirer of other companies.
Pfizer may have to pay Allergan up to $400m for its expenses as a result of terminating the deal, according to their merger agreement.
Pfizer had planned to make a decision by 2016 whether to split off its hundreds of generic medicines, but delayed the decision until 2019 after announcing its merger with Allergan.
Besides Pfizer-Allergan, other pending inversion deals that have not yet closed include the proposed $16.5bn merger of Johnson Controls with Ireland-based Tyco International, Waste Connections’ $2.67bn deal with Canada’s Progressive Waste Solutions, and IHS’ $13bn acquisition of London-based Markit.