AbbVie Does Not Stand To Lose Much If It Drops Shire Deal Now
- AbbVie has said that it is reconsidering the planned acquisition of Shire, a transaction that would have allowed AbbVie to relocate to the U.K. and reduce its tax rate significantly.
- AbbVie’s decision to reconsider comes shortly after the Treasury issued a notice that reduces the economic benefit of corporate inversion.
- Although AbbVie has said that inversion is not the main motivation for the deal, it has been clear from the start that the company pursued Shire to relocate .
- With the main incentive for the deal taken away, I think AbbVie should walk away from the deal.