Pfizer's $160 billion purchase of Botox manufacturer Allergan is set to create the world’s largest pharmaceutical company and to produce synergies of more than $2 billion over three years.
The new company will be renamed Pfizer Plc and will lead to Pfizer’s headquarters shifting to Ireland. The move is expected to produce a dramatic reduction in the company’s US tax bill and has been called “unpatriotic” by President Barack Obama.
Democratic frontrunner Hilary Clinton pledged to introduce legislation to prevent such overseas moves if she is elected.
Analysts were disappointed by the expected synergies of $2 billion, saying they had predicted synergies of $4 billion in the first year.
Pfizer said the combined company would have annual sales of about $64 million.
And while the move is thought likely to produce extensive job losses the company would not comment on where these were likely to take place.
The deal is subject to regulatory approval.