What’s Pfizer’s Real Motivation to Buy AstraZeneca?

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May 13 (Bloomberg) -- Bloomberg’s Zach Mider reports on concerns over job cuts and lower tax rate with a Pfizer and AstraZeneca merger. Mider speaks on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Exactly who is upset?

Everyone is concerned about this proposal to buy astrazeneca.

Members of parliament and the u.k. want to know whether or not this big reddish chart maker is going to have job losses -- british drugmaker is going to have job losses.

You heard those questions all over the u.k.. the pfizer ceo tried to reassure lawmakers that they did not have plans to cut too many jobs in the u.k., but underlying this is the concern that the real motivation and buying astrazeneca is to get a lower tax rate.

That leaves the member's apartment to be concerned that they might not be interested in keeping a lot of the people.

Tell me exactly how they would save taxes.

What is the mechanism?

They are proposing to change their legal domicile, so they would be a british company.

The advantage would be that the u.k. has a slightly lower tax rate, and there is also the fact that the u.s. has confusing tax rules that u.k. does not have.

A lot of smaller companies have already done this, about 40 companies over the past few decades.

They are paying much lower taxes than they would be if they remade u.s. companies.

What about congress?

Are they doing anything about it?

Nobody likes these maneuvers, they're called inversions.

The democrats do not like them, republicans do not like them.

There's not a lot of agreement about exactly what to do about them.

We heard the ceo the hearing today saying that senator levin wants to stop us, but he is just one senator.

Are the taxes that prohibitive that they cannot do business here?

The effective tax rate is about 27%. over time, if they could get it was there to the 21% of astrazeneca, that could save them over a billion dollars a

This text has been automatically generated. It may not be 100% accurate.


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