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article imagePfizer to buy Allergan for $160 billion

By Owen Weldon     Nov 24, 2015 in Business
Pfizer is planning to buy Allergan for $160 billion. When the deal is completed, it will become the world's largest drug company.
Recently, Pfizer and Allergan announced plans to merge. Pfizer is known for drugs such as Zoloft, Lipitor and Viagra. Allergan is known for products such as Juvederm, Restasis and Botox.
When the deal is done, the combined company will rename itself Pfizer and it will be considered an Irish company because Allergan is based in Ireland.
If the deal is approved, it will be the largest example of tax-inversion, when a U.S. company merges with a company in a country with a lower tax rate and moves its headquarters there.
The corporate tax rate in the US is 35 percent and in Ireland the rate is 12.5 percent.
Pfizer boss Ian Read said the money Pfizer would save from the deal would give it the strength to research, discover and deliver more medicines and therapies to people around the globe.
Regulators in the U.S. and in the European Union need to approve of the merger. Shareholders of both companies need to approve of the merger too.
Last year Pfizer made a bid to takeover rival AstraZeneca, but the UK drugs firm rejected the bid.
As of now, the White House has not commented on the deal, but President Obama has called tax inversion deals unpatriotic and has tried to crack down on the practice.
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