Actavis Lowers Rate to 17% From 37% After Warner Chilcott: Taxes

Actavis Inc.’s $5 billion deal to buy Warner Chilcott Plc brings in a new stable of brand-name women’s health drugs. It also comes with headquarters relocated to Ireland and lower taxes for the combined company.

The deal is the second by Actavis to combine product expansion with a major tax advantage that will lower the company’s tax rate to 17 percent from about 37 percent over the course of a year. U.S. lawmakers are debating an overhaul of tax code that may lower the corporate tax, now 35 percent and the highest in the developed world. As business leaders such as Apple Inc.’s Tim Cook travel to Washington to testify today on behalf of lower rates, Actavis Chief Executive Officer Paul Bisaro says his company isn’t waiting for reform.