AbbVie Paid Shire 1,6 Billion For Failed Acquistion
AbbVie has agreed to pay Shire, Irish drugmakers, 1,64 billion as compensation for the failure of the previously negotiated acquisition.
AbbVie has negotiated regarding the purchase of Shire for a few months, its proposals have been repeatedly rejected by the Board of Directors of the Irish company that was not satisfied with the offered price. The agreement was reached in July, after the next increase of the amount of the transaction, which reached $55 billion .
AbbVie had to abandon its plans after the change of tax rules by the Ministry of Finance of the United States. Innovation of the Ministry of Finance has been directed against the practice of withdrawal of American companies from taxation due to the acquisition of foreign assets.
In early October, AbbVie Council announced its intention to reconsider the benefits of the acquisition of Shire, and then formally urged shareholders not to support the deal.
Commenting on the latest decision, Richard Gonzalez, AbbVie executive director claimed about the need to revise the authorities' policy regarding the tax in the United States, which, according to him, puts American companies at a disadvantage compared to foreign competitors. "The unprecedented and unilateral decision by the Ministry of Finance devalued all the benefits of this transaction, but it does not solve the critical problems faced by American business", Gonzalez said.
Compensation in the amount of 1.64 billion dollars suits both parties of the failed deal .
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