Shire reassures Baxalta acquisition on track in the aftermath of Pfizer-Allergan breakup
Ireland-headquartered Shire Plc (LSE: SHP) has reassured its $32-billion merger deal with US-based Baxlata (NYSE: BXLT) remains on track in the backdrop of new US Treasury Department rules announced Monday.
Shire said it expects to complete the transaction by mid-2016. The Shire-Baxalta merger is targeted at creating a biotechnology firm focused on rare diseases, the company said in a statement.
In January, Baxalta agreed a takeover by Shire following months of wooing.
US regulators have implemented new regulations in a bid to control tax inversions that has led to the termination of $160 billion Pfizer (NYSE: PFE) deal with Dublin-based Allergan (NYSE: AGN).
However, this isn’t the first time government action in the US has derailed a pharma transaction. In 2014, a similar regulatory implementation led to Abbvie (NYSE: ABBV) calling off its $52 billion takeover of Shire. Previously, Shire and AbbVie agreed to terminate a merger accord following previous changes introduced in September to US tax rules.
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