LONDON: The Illinois-based company, AbbVie, will receive a break fee of 1.6 billion US dollars (£1 billion) once a meeting of its shareholders is held to rubber-stamp the decision as a second major takeover of UK Drugs Company has been skippered after the board of US firm called off its £32 billion pursuit of Shire.
In May, Viagra maker Pfizer was left frustrated after its final offer of £69 billion for Cheshire-based AstraZeneca was deemed inadequate.
AbbVie agreed the purchase of Shire in July when it said the combined company would be domiciled in the UK in a move taking advantage of a lower corporate tax rate.
US has announced it will crack down on the tax inversion practice, which has already seen a large number of firms use foreign takeovers as a way of lowering their tax bills. The tax inversion policy had been under consideration by Pfizer when it bid for AstraZeneca.
