Shire/Baxalta M&A deal: tax status proved a focal point, says expert

As with previous big pharma deals, tax status has proved a focal point, as the major players juggle jurisdictions while striving to remain on the right side of regulators to keep a lid on costs – successfully in this case, according to Joe Stelzer, managing partner at Cavendish Corporate Finance commenting on Monday’s revised terms for the Shire (LSE: SHP) bid for Baxalta (NYSE: BXLT).

Mr Stelzer continued: “Investors will be relieved that the protracted negotiations to bind Shire and Baxalta are finally at an end. As with previous headline deals in big pharma, tax status has proved a focal point, as the major players juggle jurisdictions while striving to remain on the right side of regulators in order to keep a lid on costs – successfully in this case, as Baxalta’s effective tax rate will be significantly slashed thanks to the deal.