Pfizer And Allergan Confirm Plan To Combine In $160 Billion Deal

Pfizer Inc. and Dublin-based Allergan Plc confirmed Monday that they are planning to combine in a $160 billion deal that values Allergan at $363.63 per share. The news had been widely reported over the weekend, including by The Wall Street Journal. Pfizer said the new entity will be combined under Allergan and will be renamed Pfizer Plc, making it one of the biggest so-called tax inversions ever. Pfizer shareholders will receive 1 share of the combined company per each share owned, while Allergan shareholders will receive 11.3 shares. The deal is expected to be neutral to Pfizer's adjusted earnings per share in 2017, to add to earnings in 2018 and to be more than 10% accretive in 2019. Pfizer shares fell 1.7% in premarket trade, while Allergan shares fell 2.9%.

Copyright © 2015 MarketWatch, Inc.