Pfizer and Allergan merger confirmed, in bigger-than-forecast $160 billion deal

23 November 2015

After a weekend of frenzied speculation, US pharma giant Pfizer (NYSE: PFE) confirmed that it has agreed to acquire Botox maker Allergan (NYSE: AGN) before markets opened, in an even higher offer than had been expected, and will create the world’s largest pharmaceutical company.

The two drugmakers announced that their boards of directors have unanimously approved, and the companies have entered into, a definitive merger agreement, in a stock transaction currently valued at $363.63 per Allergan share, for a total enterprise value of around $160 billion, based on the closing price of Pfizer common stock of $32.18 on November 20, 2015. This exceeds the $150 billion deal that had been widely anticipated.

Following completion of the transaction, which is expected in the second half of 2016, Pfizer stockholders will hold about 56% of the combined company and Allergan shareholders approximately 44% of the combined company on a fully diluted basis.

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