WASHINGTON D.C. (WKZO-AM) — One day after President Obama denounced attempts by American companies to avoid paying U.S. taxes by merging with foreign firms, Pfizer has called off the largest healthcare merger ever proposed.
The $160 billion Allergan deal would have moved Pfizer’s headquarters to Ireland and saved the company a billion dollars a year in U.S. taxes, but that was before the Treasury Department changed the rules.
Economic Analyst Jill Schlesinger said it also changed the dynamics of the merger and it just no longer made sense to follow through with the deal.
The president denounced tax inversions on Tuesday, saying they allow big firms to avoid paying their fair share. He said the new treasury rules are only a partial solution, that it will take congressional action to completely close the loophole.
Pfizer employs over 3,000 at its facilities in Kalamazoo County.
