Pfizer Approaches Actavis for Possible Takeover Deal after Failed AstraZeneca Bid
Pfizer are still continuing their efforts in trying to shift its tax domicile from the US after a failed bid for the UK listed AstraZeneca failed. The US drugmaker has now approached rival Actavis for a possible acquisition deal.
Bloomberg citing people with the knowledge of the matter reported that Pfizer has approached Actavis to express its interest in an acquisition. The news agency added that Pfizer is yet to make a formal offer for Actavis and the companies are not engaged in formal talks at present.
Pfizers move comes months after is failed £69.6 billion takeover attempt of AstraZeneca was snubbed with their being stiff opposition from AstraZeneca as well. This deal would have been part of the long list of “inversion” deals that ave been happening where US companies have been looking to move their tax domicile to a country where the corporate tax is much lower than the US’s 35%, which is one of the highest in the world.
Activis who are based in New Jersey, shifted their tax base back in 2013 when they acquired Warner Chilcott who are registered in Ireland. Since the news has broke about a possible takeover attempt from Pfizer, Actavis shares have risen 2.2% and the company is currently has a market value of about $63.6 billion.
Pfizer may not make any moves until late November, after US elections and the end of a standstill period on AstraZeneca mandated by UK takeover rules, a source told Bloomberg.
The news agency added that the bid for Actavis would insert Pfizer into a web of potential deals in the US pharmaceutical sector.
According to various sources of Bloomberg, Actavis has approached Allergan Inc about a possible transaction, while Allergan is in talks to acquire Salix Pharmaceuticals in an effort to fend off a hostile takeover offer from Valeant Pharmaceuticals.
None the less any possible deal would not be easy for Pfizer to complete, as the US Treasury are currently forging new rules to limit the so called tax inversion deals that enable companies to move their tax base abroad.
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