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Pfizer, Allergan Said To Consider Merging; Would Be Largest Drug Deal In History
Pfizer has an enterprise value of $221 billion.
Allergan has an enterprise value of $160 billion.
The two companies combined would have a joint EV of nearly $400 billion and a market cap of well over $300 billion. That would make a potential merger between the two the largest M&A deal in history, while a "mere takeover" of Allergan by Pfizer would still rank it as the fourth largest deal in history and the largest deal in a year that is shaping up as a record for M&A.
And, according to the WSJ, such a deal may be just a few months if not weeks away. To wit:
Drug makers Pfizer Inc. and Allergan PLC are considering combining, in what would be a blockbuster merger capping off a torrid stretch for health care and other takeovers.
Pfizer recently approached Allergan about a deal, according to people familiar with the matter, with one of them adding that the process is early and may not yield an agreement. Other details of the talks are unclear.
Allergan currently has a market capitalization of $112.5 billion, meaning that a deal for the company could be the biggest announced takeover in a year that is already on pace to be the busiest ever for mergers and acquisitions.
Granted, this won't be the first time the two pharmaceutical behemoths have been said to consider merging, although it would be the first time for Allegan in its current iteration which is a combination of Forest Labs, Watson, Warner Chilcott, Actavis and, of course Alergan; furthermore this time may be also different when one considers the recent last gasp surge in deal announcements, which is nothing more than an attempt by companies to lock in their near all time high stock prices as a merger currency, while debt is still debt.
Will the deal pass regulatory scrutiny? If enough palms are greased, sure.
More complex would be the whole tax-avoidance issue: "A tie-up with Allergan could also be a way for New York-based Pfizer to lower its corporate tax rate. Allergan is based in Dublin, which has a significantly lower tax rate than the U.S."
What is more interesting will be whether the Fed will observe what would be the mother of all mergers, and finally grasp the magnitude of the mother of all equity bubbles that it has blown. Alas, the answer will once again be a resounding now, even when this debt-funded deal leads to the CEOs becoming richer than their wildest dreams, and leads to the prompt pink slipping of several tens of thousands of workers on both sides. Simply because when the bubble is this big, there is no more stopping it.
Finally, for those interested, here is a list of all the largest M&A deals to date courtesy of CityAM:
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I thought the largest drug deal in history was when USA invaded Afghanistan? Or maybe when CIA was in south america?
I think you missed an ER at the end of deal there. Well second biggest.
and Walgreens just bought out Rite-Aid, further consolidating the drug dealers outlets.
Longs Drugs was bought by CVS not long ago ...
Nice listing of mergers and consolidations showing how agents of The Great Red Dragon continues to take steps in order to reach their goal of "owing the earth in fee-simple." Once they achieve as much as they want, we'll be in The New Dark Ages. That Sucks!
+1 yes, thanks to whoever posted the Red Dragon pdf a few weeks ago, very interesting (1890s book about the foreigners who came into usa and bought our great grandpaps out, by hook or by crook)
Hopefully when people read that book, they know it is "example only." Times change, but financial sociopaths don't. They still lie and steal; just in different ways. It's kinda like wiping the mud of your glasses; reading little incidental news takes on new meanings, and it should help you to see T-Rex's footprints and avoid being stepped on.
Monopolies/cartels in all industries is the goal of the NWO. This way they can set prices of their products as high as they like and they can shove anything down our throat.
And the regulators are the facilitators of this destruction of capitalism.
Paul Eberhart though Pablo Escobar had the largest drug deal in history?
Be a good consumer and buy health care and shut up.
All while we take away choice and hike prices on everything.
This couldn't have happened if big business and the old-money Elite hadn't successfully subversively destroyed the labor movement.
And how fitting that the final battle of their war took place in the USofA?
Free dumb.
won't it just be so much easier when the GS Squid runs the entire bartertown?
the old Slave Masters, the bad ones, would be in complete awe & envy @ the Squid progress ... soon, just the retina scan & our micro-chips will be all we need, no keys, cause we won't be driving, no shackles, cause they can just release the poisonous chip on demand to stop our movements ...
Last fall, 2014, pacific northwest Oregon/Washington had a big public meeting with the Air Force about new drones and mobile target vehicles which will implement a virtual electronic FENCE along our border. The entire audio of the event is @ craigbhulet.com website. This is to be in action by 2017, iirc. The military disclosed that it was not just Oregon & Washington, but on down the SW = Cal/Arizona/Texas/to the SE Fl/GA, Carolinas ...
maybe that $2400- isn't looking so expensive now, is it?
GW asked a recently what to do and I gave him an answer. GW did not respond.
The tide of what John Whitehead has been detailing for us about the Police State roll-out won't be tempered and rolled back without appropriate medicine. We the People simply cannot win on their terms. Quit ceding control of your consciousness to the Authoritarian Control Freaks - and the place to start is this : demand the repeal of the CSA - Controlled Substances Act.
here's a recent short speech by a Californian former USDA person - she is talking about all the spraying going on all across the usa, and I say that now as Colorado front range has been daily being sprayed constantly. I've never seen it so much, building up from this spring to now, every day, all day.
This lady is not mincing words, they are not con-trails. they are weather modification/geoengineering spray.
https://www.youtube.com/watch?list=PLwfFtDFZDpwvE5IA3cnuK50LXEBRmPJU3&v=...
and this from a couple days ago - "scientists" encourage the spraying of "diamond dust" & ALUMINA on us, you know, to protect us from climate change !
http://www.nature.com/news/climate-scientists-ponder-spraying-diamond-du...
Allergan is working on a fast acting antidepressant oral drug based on ketamine...which I think is in second or third trial stage.
No big surprise Pfizer wants to get their hands on it.
bloomberg periodically hypes up ketamine - most recently
http://www.bloomberg.com/graphics/2015-ketamine-depression-treatment/
what a racket! from the article, certain docs in NY City can offer K for depression, but look at the cost !!! $300 to $1000 per "infusion" (dose) ... LMAO!
The price for a 10ml/100mg vial say, 10-15 years ago was $4-8, thus, maybe .50c to a $1 per "infusion" (dose) . Can you say Big PHarma Drug Cartel Racket, boys & girls?
Crony Capitalism at its best! Billions of Baby Boomer assets to scavenge!
Is this Liberal? Is it Conservative? NO! It is the Kleptoligarcy marching on!
All hail the New Rome! All hail Wall Street and Washington! Bow to your rulers Serfs!
Check out the recent history of Allergan and all the buyouts over the past 2 years, headed by megalomaniac Brent Saunders.
This is a microcosm of extreme corporate greed, and the destruction of the US middle class:
Saunders becomes CEO of Forest Labs in Oct 2013, backed by corporate activist Karl I-con. Immediately announces 500 mil stock buyback, massive restructuring (layoffs), and buys Private company Aptalis ($3 billion). He also purchased $500 million in late stage compounds.
Actavis buys Forest in June 2014 and Saunders (former CEO of Forest), is named CEO of the combined company. Actavis lays off thousands of its employees. Actavis buys Auden Mackenzie for $500 million shortly thereafter.
Actavis buys Allergan in summer of 2015. Actavis takes the name Allergan. More consolidation (under the euphemism of "synergies") of Actavis and Allergan employees.
Allergan now to merge with Pfizer. Thousands more will lose their jobs.
Saunder's business strategy is simple: cut all Capex, R&D, and as much headcount as possible at each company that it takes over. Raise cheap debt to buy back stock, other companies, and late stage or on the market products. It's a process that kills innovation, good productive high paying jobs, and eliminates competition. It also makes the company itself weaker, over the long run, despite the prolific stock gains and front-loaded profits.
Pfizer would love to "merge" with Allergan as it would provide a tax inversion. Expect more "synergies".
Anyone else unsure why the wealth gap is at record high levels?
and TEVA in the generics has been buying out smaller players left & right ... massive consolidation ...
I always thought the largest drug deal in history involved the CIA and Afghanistan.
Allergizer ? Sounds scary though.
perfect for vaccine drug dealers
Who would have guessed Rollerball was our future.
Standard Disclaimer: Ladies and gentlemen, will you stand please for the playing of our Corporate Hymn.