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Ireland: US pharma nabs low tax rates in reverse merger

By  |  March 20, 2014

US-based pharmaceutical firm Horizon Pharma announced Wednesday it will acquire Ireland-based competitor Vidara, a $660 million reverse merger that will allow Horizon to take advantage of low taxes overseas.

Reports say Horizon is set to relocate its headquarters to Ireland through the buyout, which will result in a company known as Horizon Pharma PLC, with 74 percent of the new company being owned by Horizon.

According to reports, Horizon is only the latest pharmaceutical giant to utilize mergers to nab lower taxes in Ireland. Perrigo acquired Ireland-based Elan in a $8.6 billion deal, while Canada’s Paladin merged with Ireland’s Endo Health Solutions.

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