Pfizer, Allergan Terminate Merger

(RTTNews) - Pfizer Inc. (PFE) announced the termination of its merger deal with Allergan plc (AGN) by mutual agreement. The companies said the decision was driven by the actions announced by the U.S. Department of Treasury on April 4, 2016, which the companies concluded qualified as an "Adverse Tax Law Change" under the merger agreement. Pfizer has agreed to pay Allergan $150 million for reimbursement of expenses associated with the transaction.

Ian Read, Chairman and CEO, Pfizer, said: "We plan to make a decision about whether to pursue a potential separation of our innovative and established businesses by no later than the end of 2016, consistent with our original timeframe for the decision prior to the announcement of the potential Allergan transaction."

Allergan reiterated its standalone growth profile and strategy following the announced termination of the agreement. Based on a preliminary review of the proposed regulations outlined in the U.S. Treasury Notice, Allergan believes that the regulations will have no material impact on the company's standalone tax rate.

"While we are disappointed that the Pfizer transaction will no longer move forward, Allergan is poised to deliver strong, sustainable growth built on a set of powerful attributes," said Brent Saunders, CEO and President of Allergan.