Allergan, Pfizer Call Off Proposed $160B Merger

NEW YORK (AP) -
FILE - In this Monday, Nov. 23, 2015, file photo, the Allergan logo appears above a trading post on the floor of the New York Stock Exchange. Pfizer Inc. and Allergan Plc are scrambling to determine whether to proceed with their plan to merge. Both companies were mum Tuesday, April 5, 2016 on what they'll do, other than to swat swirling rumors that they’re leaning toward dropping the inversion. (AP Photo/Richard Drew, File)
The Allergan logo appears above a trading post on the floor of the New York Stock Exchange in this file photo. (AP Photo/Richard Drew, File)

Allergan and Pfizer are calling off a record $160 billion merger after the Treasury issued new rules to make “tax inversions” less lucrative.

The aggressive changes to U.S. tax laws announced this week helped to kill the deal. The merger would have moved Pfizer’s address — but not its operations or headquarters — to Ireland where it would’ve paid far less in corporate taxes.

Pfizer Inc., based in New York, has agreed to pay Allergan PLC $150 million for reimbursement of expenses.