Pfizer (NYSE:PFE) and Allergan (NYSE: AGN) are in the final stages of discussion to close a $150 billion all-out stock deal as the U.S. Treasury prepares to clamp down on tax inversion deals.
Pfizer will pay $370 to $380 per share for Allergan, according to Reuters. Allergan shares are trading at $312.46 as of 4:02 p.m. EST today.
The deal sets Pfizer to offer more than 11 shares each for every Allergan share held, CNBC reported yesterday, and would result in Pfizer’s tax domicile shifting to Ireland.
Pfizer CEO Ian Read will operate as chief exec of the combined companies, while Allergan CEO Brent Saunders will have another “very senior role.”
The U.S. Treasury disclosed this week it would seek to tighten rules on tax inversion deals that move U.S. companies to foreign tax jurisdictions.
In an inversion, a U.S. company typically buys a smaller foreign rival and relocates, at least on paper, to the rival’s home country so the new combined company is not U.S.-based, though core management usually stays in the United States.
Material from Reuters was used in this report.