US-based pharmaceutical conglomerate AbbVie is reportedly reconsidering its decision to recommend that its shareholders approve of a proposed merger worth nearly $51 billion with UK-based Shire thanks to changing tax regulations.
According to reports, AbbVie is rethinking its strategy after the US Treasury Department unveiled plans to crack down on so-called inversion mergers, which sees companies benefit from another country’s lower taxes through a merger. AbbVie had looked to merge with Shire and to relocate its tax bracket to the UK, say reports.
The pharmaceutical firm said Tuesday that it would hold a meeting later this month to decide whether to revise or retract its recommendation that its shareholders vote in favor of the merger.
Several jurisdictions across the globe have expressed concern over such deals, including within the US and EU.
Full content: Reuters
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