Pfizer Inc. (NYSE: PFE) and Allergan (NYSE:AGN) agreed to merge in a roughly $160 billion deal, which is the largest deal ever for the pharmaceutical sector. The announcement comes a few days after Treasury tightened the rules to curb such deals.
“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,” Ian Read, chairman and CEO of Pfizer said in a statement announcing the deal.
Allergan shareholders will receive 11.3 shares of the combined company for each Allergan share while Pfizer shareholders will receive one share of the combined firm for each Pfizer share.
The deal will close in second half of 2016. After the merger, the company will be called Pfizer Plc and will trade under the PFE symbol.
“The combination of Allergan and Pfizer is a highly strategic, value-enhancing transaction that brings together two biopharma powerhouses to change lives for the better,” said Brent Saunders, CEO of Allergan in the announcement.
