Pfizer and Allergan's $150bn merger to create world’s largest pharma company
Pfizer Inc secured formal board approval on Sunday for its acquisition of Allergan Plc in deal worth more than $150bn ($99bn).
The merger, which will create the world’s biggest pharmaceutical company, will be confirmed today and would involve Pfizer paying with 11.3 of its shares for each Allergan share, according to Reuters. In addition, there would be a small cash component, accounting for less than 10 per cent of the value of the deal.
Following the acquisition, Pfizer would redomicile to Ireland, where the manufacturer of Botox is already registered, resulting in a significant drop in corporate tax contribution to the US economy.
Pfizer’s Chief Executive Ian Read has been named CEO of the newly-combined company, while Allergan’s CEO Brent Saunders will serve in a ‘very senior role’.
As the largest merger of the year, the pharma deal would top Anheuser-Busch InBev’s (ABI.BR) proposed takeover of SABMiller Plc, estimated at $107bn.
This was posted in Bdaily's Members' News section by Ellen Forster .