Pfizer PLC Nudges Out Novartis AG to Become the New Behemoth in the Drug World
In breaking news released today, Pfizer and Allergan announced that they are executing a reverse merger worth $160 billion. Yes, billion with a “B.” This is a massive deal and will position the newly combined company as the largest pharmaceutical company in the world, bumping out current leader, Switzerland’s Novartis AG, for 1st place.
To secure a lower tax rate, Allergan is technically buying Pfizer, although the numbers do not indicate that to be true. Allergan stock holders will get 11.3 shares of the combined company for each of their shares, while Pfizer stockholders will only get a one-to-one exchange for their shares (one existing share of Pfizer stock for one new shared of the combined company).
In a classic move to allow brand continuity for the more dominant brand name, Pfizer and Allergan will be renamed as “Pfizer PLC.” [Read more…]