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Pfizer, a drugmaker, and Allergan, best known for its Botox anti-wrinkle treatment, are discussing a possible merger, according to reports on October 29th. Pfizer, based in the United States, has long griped about its tax burden. Last year it tried and failed to buy AstraZeneca, a British counterpart. If the deal had gone through, Pfizer would have been able to shift its tax domicile to the United Kingdom, lowering its corporate-tax rate. Since then, investors have assumed it was casting around for a similar deal; and Allergan, based in Ireland, where taxes are even lighter, was an obvious target.
If the proposed merger goes through, the combination will be a monster among medical firms. Its stockmarket value would be in excess of $300 billion, exceeding that of Johnson & Johnson, currently the world's largest maker of drugs and medical devices. Pfizer-Allergan would overshadow even the gargantuan beer merger of AB InBev and SABMiller that is currently brewing.
Pfizer is itself the product of giant mergers, …Original Article
