Deals
Tougher U.S. Tax Rules Cited as Salix Ends Cosmo Deal
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Salix Pharmaceuticals Ltd. and Italy’s Cosmo Pharmaceuticals SpA ended a $2.7 billion merger agreement, the first time a U.S. company has blamed tougher rules for scrapping a plan to move overseas for lower taxes.
Salix will make a $25 million payment to Lainate-based Cosmo, the companies said in a statement today. Raleigh, North Carolina-based Salix is in talks to sell itself to Actavis Plc, people with knowledge of the matter said yesterday.