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Drug giants Pfizer, Allergan in ‘friendly’ merger talks
USA Today

Drug giants Pfizer and Allergan are weighing a massive merger in a deal that would deliver a sharp jolt to an industry accustomed to shakeups and could also stir up political division over U.S. tax policy.

The potential combination would easily qualify as the largest merger or acquisition of the year in business, with both pharmaceutical companies combining for a market capitalization of nearly one-third of a trillion dollars.

But it could provoke political dissension if it’s structured as a corporate inversion — a tax maneuver which a company strategically acquires a foreign entity and then legally changes its headquarters to the target’s foreign base to save on its U.S. tax bill.