US pharmaceutical giant Pfizer Inc. and Dublin-based drugmaker Allergan PLC are nearing a merger deal worth more than US$150 billion, the Wall Street Journal reported, citing people familiar with the matter.
An agreement, which will create the world’s biggest drugmaker by sales, could be announced as soon as Monday, the report said.
The transaction is likely to see 11.3 Pfizer shares offered for every Allergan share, besides a small cash component, sources were quoted as saying.
To bring down the tax rate, the deal will be technically structured as a reverse merger, with Allergan buying New York-based Pfizer, according to the report.
Pfizer Chief Executive Ian Read is expected to lead the combined company.
The deal, which could take seven to nine months to be completed, will bring together two pharma powerhouses with more than US$60 billion in combined sales, the Journal noted.
Once the deal closes, the new entity is expected to evaluate splitting into two businesses, one focused on patent-protected products and the other on drugs that have lost their patent protection or are close to losing it.
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