Pfizer acquires Allergan in $160bn deal

Allergan’s parent firm will be the parent of the combined new business. The company’s shareholders would receive 11.3 shares of the newly combined firm for each of their existing shares.

Pfizer investors will get one share of the new company for each of their shares or a portion of payment in cash from $6bn to $12bn.

The deal terms call for the companies to combine under Allergan plc, which will be renamed Pfizer plc.

The combined company is expected to maintain Allergan’s legal and tax residency in Ireland. Pfizer will have its global operational headquarters in New York and its principal executive offices in Ireland.

Pfizer chairman and CEO Ian Read will run the combined company. Allergan CEO Brent Saunders will serve as president and COO.

The combined company will benefit from a portfolio of medicines in several categories. Pfizer will improve its research and development capabilities in new molecular entities and product line extensions.

A combined pipeline of over 100 mid-to-late stage programs will support the business growth in the long term.

The transaction, which is subject to regulatory approvals in the US and Europe, is expected to be completed in the second half of 2016.

Read said: "Through this combination, Pfizer will have greater financial flexibility that will facilitate our continued discovery and development of new innovative medicines for patients, direct return of capital to shareholders, and continued investment in the United States, while also enabling our pursuit of business development opportunities on a more competitive footing within our industry."

Several US politicians have however raised concerns on the proposed merger. Pfizer has been accused of using legal loopholes to avoid taxes.

Image: Pfizer World headquarters in New York City. Photo: courtesy of Norbert Nagel, Mörfelden-Walldorf, Germany.