Pfizer Inc.’s announcement Nov. 23 that it had reached a deal with Allergan PLCto buy the company for $160bn, adding the Botox maker’s roster of drugs and substantially reducing its tax rate, was just the news many investors wanted to hear. However, an addendum revealed by CEO Ian Read – that the acquisition would delay by two years Pfizer’s decision on whether to break up the business – had the opposite effect.
Pfizer’s Allergan Acquisition Paves The Way For A Split – But Delayed
Pfizer’s $160bn deal to buy Allergan and redomicile in Ireland could position the company better for an eventual split. But Pfizer said it will now wait until 2018 to decide if it will break up the company, disappointing some investors.