But news outlets note that the deal, which would allow Pfizer to escape the U.S. corporate tax rate, could be difficult to pull off. AstraZeneca says it rebuffed the American drug maker's advances earlier.
The New York Times’ Dealbook: Pfizer Proposes A Marriage With AstraZeneca, Easing Taxes In A Move To Britain
On Monday, Pfizer proposed a $99 billion acquisition of its British rival AstraZeneca that would allow it to reincorporate in Britain. Doing so would allow Pfizer to escape the United States corporate tax rate and tap into a mountain of cash trapped overseas, saving it billions of dollars each year and making the company more competitive with other global drug makers. A deal — which would be the biggest in the drug industry in more than a decade — may ultimately not be done. AstraZeneca said on Monday that it had rebuffed Pfizer, after first turning down the company in January. Nonetheless, the pursuit by Pfizer, founded in a redbrick building in Brooklyn in 1849, has made it clear that the company wishes to effectively renounce its United States citizenship (Gelles and de la Merced, 4/28).
NPR: Tax Breaks Could Be Biggest Prize In Pfizer Deal For AstraZeneca
Pfizer finally fessed up and told the world that it wants to buy British drugmaker AstraZeneca. It wasn't a very well-kept secret. The New York-based drugmaker confirmed publicly that it approached AstraZeneca in January about getting together. AstraZeneca, based in London, rebuffed the New Yorkers (Hensley, 4/28).
The Wall Street Journal: Pfizer Sees Tax Savings From AstraZeneca Deal
Pfizer Inc.'s nearly $100 billion offer to buy British rival AstraZeneca, if accepted, would allow the pharmaceutical giant to move its official headquarters overseas, saving the company that started 165 years ago on a Brooklyn, N.Y., street corner billions in taxes over the next decade. Company executives were outspoken about how their attempted takeover of AstraZeneca, which was confirmed early Monday, would help Pfizer slash its tax bill, saving $1 billion or more each year by one estimate (Hoffman, 4/28).