New Tax Rules Won’t Stop Pfizer From Bidding U.S. Goodbye CEO says there is still value to moving its headquarters out of the U.S.
Pfizer has been on the hunt for a multibillion-dollar deal that would add to the New York-based drugmaker’s pipeline, cut costs, and help it escape the U.S.’s 35% corporate tax rate. Under the strategy called inversion, U.S. companies use mergers to shift their legal address to a lower-tax country without moving their operations.
The ideal transaction has all three components, though U.S. Treasury Department rules announced last month could lower the value Pfizer assigns to the tax advantages. A tax inversion isn’t required for a deal