Pfizer + Allergan Deal

 US based pharmaceutical giant

Pfizer
 Revenue 2015: $48 Billion
 Pfizer is organized into nine principal operating divisions:
Primary Care, Specialty Care, Oncology, Emerging Markets,
Established Products, Consumer Healthcare, Nutrition,
Animal Health, and Capsugel
 Ireland based pharma giant
 Allergan was acquired by another American
Allergan
based pharma company in a tax inversion
deal valued $70.5 Billion

 CEO: Brent Saunders

 Revenue (2015): $16 Billion
 Merger will result in the formation of world’s biggest drug
Stake in the new
company buy sales.
company
 Deal values combined company at $160 Billion
About the deal
 The deal is the largest so-called inversion deal ever
44% Pfizer
56%
 Pfizer share holders will get one share in the new company Allergan

for every share they hold

 Allergan shareholders will get 11.3 shares per share in the
company
 Companies said they expect the company to have an
effective tax rate of 17% to 18% in the first full year after
Major reason
closing, compared to around 25% for Pfizer at present.

fortwothe
 The merger
companies said they expect to wring over $2 billion
a year worth of increased efficiencies out of the deal within
three years

 Read’s goal of splitting Pfizer into two parts: an innovative

R&D driven business and drug enterprise
  US corporate tax policy allow foreign companies
minimize tax by keeping US operation separate
 This lead to various inversion deal to shift the US based
companies headquarters to other countries through
Tax Inversion mergers and acquisition

 Other example of inversion deal in the industry is the

Allergan and Actavis
 US tax rule was changed to curb the inversion deals
What really
 This put an end to $160 Billion merger of Pfizer and Allergan
happened…
 The merger would have allowed New York-based Pfizer to cut its tax
bill by an estimated $1 billion annually by domiciling in Ireland,
where tax rates are lower.