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takyon [soylentnews.org] writes:

A planned merger that would have moved Pfizer's [wikipedia.org] assets overseas to Ireland has been abandoned [marketplace.org] days after the U.S. Treasury announced plans to prevent corporate tax inversions [treasury.gov]:

US drugs giant Pfizer has scrapped a planned merger with Ireland's Allergan amid plans to change US tax laws. The decision comes two days after the US Treasury announced fresh plans to prevent deals known as "inversions", where a US firm merges with a company in a country with a lower tax rate. The Pfizer-Allergan deal, valued at $160bn (£113bn), would have been the biggest example of an "inversion". [...] The corporation tax rate in the Republic of Ireland is 12.5%, compared with 35% in the US.

Also at Reuters [reuters.com]. U.S. Treasury Dept. Fact Sheet [treasury.gov]. More on tax inversions [wikipedia.org].

Previously: Pfizer to Buy Allergan for $160 Billion in Biggest Ever Pharma Deal [soylentnews.org]

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