Pfizer, Allergan combining in $160 billion deal to make world’s largest drugmaker

FILE - A Jan. 25, 2009 file photo, shows Pfizer's world headquarters in New York. Pfizer Inc. reported Tuesday July 31, 2012, its second-quarter net income jumped 25 percent as sharply lower production, marketing and restructuring costs more than offset a plunge in revenue from cholesterol fighter Lipitor caused by generic competition. (AP Photo/Mark Lennihan, File)

(AP) — Pfizer and Allergan will join in a $160 billion deal to create the world’s largest drugmaker.

The transaction is valued at $363.63 per Allergan share. Allergan shareholders will receive 11.3 shares of the combined company for each of their shares. Pfizer stockholders get one share of the combined company for each of theirs.

It’s the biggest health care deal ever and the largest so-called inversion in history, a tax-saving maneuver in which a U.S. company reorganizes in a country with a lower corporate tax rate.  U.S. efforts to curb the practice have so far proven ineffectual.

Botox maker Allergan is based in Ireland but runs much of its operations out of New Jersey.

Pfizer and Allergan will be combined under Allergan PLC, which will be renamed Pfizer PLC.

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