Pfizer and Allergan merge to form world's largest drug maker

A few weeks ago, we highlighted what was suspected to be high level discussions about a merger between drug making giant Pfizer and Allergan. The proposed merger would lead to the world’s largest drug maker, and would the merger would be valued at nearly $160 billion dollars. Additionally, the move would likely be the added piece to set a record for corporate transactions with a total of $3.7 trillion in total values.

Fast forward to the week of Thanksgiving, and what was initially hyperbole has now become reality. The deal easily becomes the largest deal ever in the health care industry. There are certainly benefits on both sides. According to a story reported by the International Business Times, Allergan investors are slated to receive just over 11 shares of new company stock for each share they currently own. Pfizer stockholders will receive one share for each share that they own. 

However, Pfizer gains the opportunity for significant tax breaks as its corporate headquarters moves to Ireland from the United States. So the company may not be subject to the highest corporate tax bracket. Ireland’s tax scheme is ostensibly more friendly at 12.5 percent of corporate profits. The U.S has the highest corporate tax scheme of any industrialized nation.

In the meantime, the deal must be approved by federal regulators. This inversion deal will undoubtedly draw a great deal of attention and criticism from politicians and tax pundits alike.

Ultimately, the Pfizer Allergan deal exemplifies the growing trend of mergers and acquisitions that is not expected to end soon. If you have questions about how a corporate transaction should be structured, the attorneys of Shulman Bastian Friedman & Bui LLP can help. 

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016 AV preeminent |  Jeffery Broker

Schedule a Consultation Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

Irvine
100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

Riverside
3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions