AbbVie calls off $55 billion acquisition of Shire
U.S. drugmaker AbbVie Inc (ABBV.N) said on Monday it has reached agreement with Shire Plc (SHP.L) to officially call off its proposed $55 billion purchase of the Irish company, and will pay Shire a $1.64 billion breakup fee for walking away from the deal.
AbbVie, which last week said its board of directors had withdrawn its recommendation to proceed with the Shire purchase, blamed the unraveling on last month’s rules changes by the U.S. Treasury Department aimed at curtailing a wave of such deals in which U.S. companies would redomicile overseas to take advantage of lower corporate tax rates in other countries.
The company’s Chief Executive, Richard Gonzalez, on a conference call with investors, said the new rules and possible future changes “created an environment of risk and uncertainty which makes proceeding not in the best interest of our shareholders.”
“The executive management team ultimately concluded that the transaction was no longer in the best interests of stockholders at the agreed upon valuation, and the board fully supported that conclusion,” the company said in a statement.
Source: Reuters- AbbVie calls off $55 billion acquisition of Shire
