US: Donald Trump slams Pfizer’s ‘disgusting’ mega-merger

Pfizer announced Monday it will buy Allergan for $363.63 a share, or about $160 billion. The takeover would be the largest inversion ever, moving one of the top corporate names in the United States to a foreign country, the Wall Street Journal reported. On Monday, the White House declined to comment on Pfizer’s acquisition of Allergan, but said USA lawmakers should take legislative steps to prevent deals where companies lower their taxes by reincorporating overseas. Ian Read, CEO of Pfizer will be chairman and CEO of the new company, while Allergan CEO Brent Saunders will be president and chief operating officer, overseeing sales, manufacturing and strategy. The new company will list under the PFE ticker on the New York Stock Exchange.

The US corporate tax rate of 35 percent is among the world’s highest, and compares with Ireland’s rate of 12.5 percent. A month ago, Allergan, which is based in Ireland and has a sizable operation in Irvine, Calif., said it was approached by New York-based Pfizer but cautioned that there was “no certainty” that the “friendly” discussions would lead to a merger.

The deal is a victory for Mr Read, who in 2014 sought an inversion transaction with AstraZeneca, but was repeatedly rebuffed by the British company, which said Pfizer had undervalued its business.

The deal might have been described as a mega-merger in the pharma industry, but some of the leading analysts and pharma company executives in India told Business Today it doesn’t hold much ground for Indian pharma companies. Pfizer dropped 2.6 percent and Allergan 3.4 percent after the drug companies announced their $160 billion merger.

Full content: The Mirror

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