AbbVie hit with an unexpected £673m Irish tax bill, further complicating Allergan merger


AbbVie has been dealing with obstacle after obstacle regarding its proposed Allergan merger, as the FTC again recently requested a second request for information on the deal, highly indicating that AbbVie will have to sell of further assets to meet regulators’ approval.

Last week, Ireland's minister of Finance, Paschal Donohoe introduced new measures targeting mergers made through ‘share cancellation schemes.’ In those deals, which were not previously subject to the countries 1% stamp duty, Irish companies would dissolve existing shares and issue new stock to the acquiring firm to complete the deal. This would amount to £673m for AbbVie. If AbbVie were to walk away from the merger, they would have to pay a termination fee, valued at £1.62 billion, over double the stamp duty fee.

AbbVie and Allergan have both already taken precautionary measures to clear anti-trust hurdles, including Allergan volunteering two of its drugs that overlap with AbbVie products in the inflammatory disease and pancreatic enzyme markets.

No comments:

Post a Comment

Coranavirus and its relationship with IP exclusivity

With the global shutdown that has occurred due to COVID-19, its presence has caused long-lasting effects in all aspects of our lives and t...