Home Consumer Pfizer And Allegran in $160-Billion Merger

Pfizer And Allegran in $160-Billion Merger

The Pfizer logo is seen at their world headquarters in New York April 28, 2014. REUTERS/Andrew Kelly

By Kevin McCoy, USA TodaySouthFloridaReporter.com, Nov. 23, 2015 – U.S. pharmaceutical giant Pfizer(PFE) and Irish rival Allergan(AGN) Monday announced a record-breaking $160-billion merger, the largest in health-care industry history and the biggest yet using a controversial tax-saving strategy.

In a transaction expected to create the world’s largest drugmaker, the companies said Allergan shareholders would receive 11.3 shares of the newly combined company for each of their existing shares, while Pfizer investors will get one share of the new company for each of their shares.

The stock transaction is currently valued at $363.63 per Allergan share, for a total enterprise value of roughly $160 billion based on the $32.18 per share closing price of Pfizer stock on Nov. 20, the companies said.

Pfizer, the maker of erectile dysfunction medication Viagra and cholesterol-lowering drug Lipitor, and Allergan, whose brands include cosmetic medication Botox, predicted the combined company would have more than $25 billion in operating cash flow starting in 2018.