Pfizer Merges With Allergan. For Tax Reasons.

Over regulations by governments have telling impacts on profits. And big business has a way to make the governments pay. Monday,Pfizer, best known for inventing Viagra and Allergan that makes military drugs, announced the biggest medical merger in history. The deal is worth about $160 billion and at once hatching a company that has a combined market value that exceeds $300 billion. Analysts say the deal was to avoid painful taxes in the US. Pfizer is based in America and pays taxes that it believes are too high while Allergan is based in Ireland that has a much lower tax rates . The new company will be known as Pfizer, an American company. But their books would now be written in Ireland where the operational headquarters is based. The move saves Pfizer as much as 25% in taxes. American politicians are not happy about it .Hillary Clinton,US Democratic frontrunner in next years elections has tweeted that the deal is bad for America. The merger dubbed "tax merger" can. create a domino effect where other companies will buy smaller companies in tax friendly countries. Supporters of the deal blame Barak ' Obama's polIcy of over taxing big business.
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