Biggest takeover of the year
Pfizer and Allergan to create biggest pharma group
Pfizer is to acquire the Dublin-based Botox maker Allergan in a $150 billion deal that will create the biggest pharmaceuticals company by sales.
The deal – the biggest global merger this year – will create a combined giant based in the Irish capital under a “tax inversion” arrangement which will allow it to take advantage of Ireland’s lower corporate tax base.
This is expected to prompt more outrage in the US where such practices have been condemned for depriving the Treasury of tax income.
Pfizer, maker of viagra, will issue 11.3 of its shares for each Allergan share with a small cash component, accounting for less than 10% of the value.
Pfizer’s chief executive Ian Read will be chief executive of the combined company, with Allergan’s CEO Brent Saunders taking a senior role focused on operations.
The deal will create a company with annual sales of more than $60 billion, well ahead of the second biggest US drugmaker Merck, which has annual income of about $40bn.