Pfizer Calls Off Tax-Dodging Merger with Allergan
Pfizer, the biggest U.S. drugmaker, won't be going ahead with its merger with Allergan, a company based in Dublin, Ireland.
The two companies called off the record $160 billion merger Wednesday by mutual agreement.
Under the deal, Pfizer's operations and headquarters would have stayed in the U.S., but its address would have moved to Ireland, where it would pay far less in taxes.
Pfizer pointed to new regulations by the Treasury Department that make such mergers, known as tax inversions, less profitable.
Other businesses have moved their addresses out of the U.S. for tax reasons. Critics say businesses have moved because U.S. corporate tax rates are the highest in the developed world.