Inversion Crackdown: Does It Spell The End For Pfizer/AstraZeneca?

Treasury’s initiative to reduce M&A motivated by tax avoidance could leave Pfizer in a lurch, without an attractive acquisition target to reenergize the big pharma’s long-term outlook. Other deals hang in the balance, most notably AbbVie’s $53.3 billion acquisition of Shire, already signed but not yet closed.

U.S. tax policy changes intended to reduce the economic advantage from mergers and acquisitions done for tax inversion leave Pfizer Inc. investors wondering what the changes will mean for the firm’s M&A strategy, particularly whether a potential mega-merger with AstraZeneca PLC will be off the table.

Other pharma deals hang in the balance, most notably AbbVie Inc.’s $53.3 billion acquisition of Shire PLC, already signed but not yet closed [See Deal]. The...

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