Moscow. November 19. American pharmaceutical company Pfizer Inc. close to buying registered in Ireland Allergan Plc priced from $370 to $380 per share, reports Bloomberg, citing informed sources.
The proposal for the upper limit Allergan estimates the overall $150 billion, which will make the largest merger in the pharmaceutical industry and the third largest in the history of M&A.
Allergan shares rose 4.5% on the trading on the NYSE on Wednesday, to $310,8. Pfizer added value of 1.3%.
In late October, Allergan confirmed that “friendly negotiation” with Pfizer, adding that so far they have not led to any agreement and there is no certainty that a transaction will be developed or the conditions of its possible conclusion.
Even if companies manage to agree, the deal may be postponed due to the objections of the U.S. Treasury against tax inversion – transfer tax registration (often after M&A) in countries with a lower tax burden, Bloomberg reported.
Pfizer revenue for the latest quarter reached $12.1 billion, with growth year-on-year by 6%. Alergan sales grew in the last quarter by 10% on revenue of $5.8 billion
Allergan’s market capitalization is almost $117,2 billion Pfizer – $203 billion. Thus, the capitalization of the combined company, which will be the largest in the industry, surpassing Johnson & Johnson, may exceed $300 billion.