Pfizer will pay a Botox manufacturer $ 150 million for refusing to confluence

The American pharmaceutical company Pfizer has officially announced the cancellation of a merger transaction with the Irish Allergan. This is stated in the Pfizer press release.

As a penalty for refusing to acquire Pfizer, $ 150 million will pay Allergan. Earlier, business media indicated that the penalty can be up to $ 400 million.

As explained in Pfizer, the decision to cancel the transaction is related to the actions of the US Treasury. On April 4, the department announced additional measures to reduce the number of transactions with the so -called “tax inversion”, which enables American companies after acquiring foreign firms to go to foreign jurisdiction with a lower tax burden.

If the transaction between Viagra and Botox manufacturers took place, it would become the largest in the history of the pharmaceutical industry - its amount was estimated at about $ 160 billion Pfizer and Allergan announced the deal in November 2015. It was noted that after the merger Pfizer will be able to significantly reduce the tax burden by registering in Ireland - in this country a corporate tax five is lower than in the United States.