Summary
Pfizer Inc. (PFE) announced on April 6, 2016, the termination of its previously agreed-upon merger agreement with Allergan plc. This termination was mutually agreed upon due to an 'Adverse Tax Law Change' as defined within the original merger agreement. As a result of this termination, Pfizer will pay Allergan a breakup fee of $150 million to cover Allergan's costs, fees, and expenses associated with the merger agreement and related transactions.
Key Highlights
- 1Termination of the Merger Agreement between Pfizer and Allergan plc.
- 2The termination was mutually agreed upon by both parties.
- 3The reason for termination cited is an 'Adverse Tax Law Change'.
- 4Pfizer will pay Allergan a $150 million termination fee.
- 5This fee is intended to cover Allergan's costs, fees, and expenses related to the merger.
- 6Both Pfizer and Allergan have released each other from all claims related to the merger agreement and related transactions.
- 7A press release was issued on April 6, 2016, to announce this termination.
Frequently Asked Questions
Pfizer terminated the merger agreement with Allergan due to an 'Adverse Tax Law Change', as defined in the original agreement. This change in tax law made the originally planned merger no longer advantageous or feasible from a tax perspective.
Pfizer agreed to pay Allergan $150 million as a termination fee. This payment is intended to reimburse Allergan for its costs, fees, and expenses incurred in connection with the merger agreement and related transactions.
While the termination of a significant merger can have strategic implications, this filing primarily addresses the financial aspects of the termination. It signifies the end of this specific merger plan, and any broader operational impacts would likely be detailed in future filings or company communications.
No, the Termination Agreement includes mutual releases where both Pfizer and Allergan have released each other from any and all claims, actions, obligations, liabilities, expenses, and fees in connection with or arising out of the terminated merger agreement and related transactions.