A possible deal between drug giants, Pfizer 's botox-making Ireland and S&P would easily be the largest merger or acquisition of the year , with a combined market capitalisation of $100 billion-plus , however it could ignite political issues if it is structured as a corporate inversion, a tax maneuvure whereby a company strategically acquires a foreign entity and then legally changes its headquarters to the target's foreign base to save on its tax bill in the US . S&P analyst, Jeffrey Loo , says this merger "fits nicely for a tax inversion deal. Clearly that's a goal of theirs", following Pfizer's CEO, Ian Read's recent attack on the US tax code. Financial indications of the deal have not been released but two possibility is that Pfizer could split into two companies after completing the acquisition.
A possible deal between drug giants, Ireland's botox-making Allergan and Pfizer would easily be the largest merger or acquisition of the year, with a combined market capitalisation of around $333.3bn, however it could ignite political issues if it is structured as a corporate inversion, a tax maneuvure whereby a company strategically acquires a foreign entity and then legally changes its headquarters to the target's foreign base to save on its tax bill in the US. S&P analyst, Jeffrey Loo, says this merger "fits nicely for a tax inversion deal. Clearly that's a goal of theirs", following Pfizer's CEO, Ian Read's recent attack on the US tax code. Financial indications of the deal have not been released but one possibility is that Pfizer could split into two companies after completing the acquisition.