The maxi merger in the pharmaceutical world will take place. The American Pfizer and Irish Allergan, known respectively for Viagra and Botox, have made their wedding plans official. The value of the transaction is estimated at 160 billion dollars and the result will be the largest group in the world in the sector.
The merger is expected to be completed in second half of 2016. The agreement will bring tax advantages for the US company given that the company's headquarters should be in Ireland.
In the transaction, Allergan will be valued at $363,63 a share, the company reported on Monday. This is a premium of over 30% compared to the latest stock exchange values.
However, the operation came under the sights of Standard & Poor's, which decided to put the rating on Pfizer, equal to "AA", under observation with negative implications. The agency's decision comes on the day of the announcement of a transaction which for S&P is aimed at "further strengthening the already excellent positioning in the high-margin pharmaceutical sector, adding a series of strong products to the group's portfolio". The eventual node would be the next buyback: "Although stock buybacks will likely be financed with free cash flow, free cash and investments, debt could grow over the next few years," Standard & Poor's said.
