Allergan and Pfizer begin merger talks

Allergan Plc. and Pfizer Inc. confirmed Thursday that they are discussing a potential merger.

Both companies indicate that talks are “preliminary and friendly” and  no agreement has been reached.  A merger would make Pfizer the world’s largest drug maker and allow New York-based Pfizer take advantage of Ireland’s lower corporate tax rate.

Allergan Plc. was created when Actavis acquired Allergan Inc. in November 2014 and halted a hostile takeover attempt by Valeant Pharmaceuticals. Allergan stated in its release that it remains strongly committed to complete the proposed divestment of its global generics business to Teva Pharmaceutical Industries Ltd and further announcements would be made when appropriate.