#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Dublin: 9°C Monday 30 November 2020
Advertisement

Ireland-based pharma firm's €43b merger is off, but it could get a Botox injection instead

Dublin-headquartered Shire and US company AbbVie pull the plug on their big pharma deal.

Image: J.M. Guyon/Candybox Images/Press Association Images

A €43-BILLION MERGER between Ireland-based big pharma company Shire and US medical giant AbbVie is officially dead and buried.

But another potential suitor for the Dublin-headquartered company has emerged in the form of Botox maker Allergan.

AbbVie said it had reached an agreement with Shire to pull out of their proposed $55 billion (€43 billion) merger because recent US tax law changes meant the deal was no longer worthwhile.

The US Treasury has introduced laws to cut down on big domestic firms taking advantage of so-called “tax inversions” to shift their tax bases offshore and take advantage of lower tariffs overseas.

Shire will get a $1.63 billion (€1.28 billion) break fee as part of the arrangement and its chairman, Susan Kilsby, said the company was set up for growth across its business despite being “disappointed that the offer will not now complete”.

It agreed to let AbbVie walk away from the merger after the US company’s board recommended its shareholders vote against the deal.

A Botox operation is on the table

Another possible merger has since emerged with Reuters reporting a major shareholder of Botox and pharmaceutical manufacturer Allergan was urging the California-headquartered company do a deal with Shire.

Allergan already has its main European support office in Dublin and it also operates a 50,000 sq/ft factory in Westport, Co Mayo, and it has recently fended off three bids from rival firm Valeant.

READ: US pharma giant’s €43 billion deal with Ireland-based firm could be off the table now >

READ: Multinationals were worth less to the Irish economy last year as the Viagra effect wore off >

About the author:

Peter Bodkin  / Editor, Fora

Read next:

COMMENTS (9)