Hospira Inc. is in talks to buy Danone S.A.'s medical-nutrition unit in a cash-and-stock deal that could be worth nearly $5 billion, the Financial Times reported Sunday, cited unnamed sources familiar with the situation. The move would allow Hospira to shift its tax domicile to France in a so-called "tax inversion", so long as the deal leaves at least 20% of shares in the combined company held outside of the U.S., according to the report. However, "talks were ongoing and no deal was certain," the Financial Times said. France's average corporate tax rate is 34.4% compared to 39.1% in the U.S., according to the Tax Foundation, a policy institute that generally supports lower taxes, citing data from the Organization for Economic Cooperation and Development. Danone S.A.'s medical-nutrition unit's brands include Nutricia and Cow & Gate.

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