Pfizer, AstraZeneca Deal: US Politicians Question Takeover Approach

drugsUS drugmaker Pfizer’s bid for AstraZeneca has prompted political scrutiny, as Washington politicians raised concerns over a potential threat to jobs.

Deal or no deal

American politicians have damaged Pfizer’s hopes of success, saying that the deal could have negative consequences.

State governors of Maryland and Delaware have written a statement to Pfizer’s Chief Executive, saying they are “very concerned” about the takeover approach and the possibilities of job losses.

Huge tax loophole

Senators Car Levin and Roy Wyden, meanwhile, are considering to close the tax loophole that the US drugmaker plans to use.

“I’ve long been concerned about inversions – companies moving offshore on paper, for tax purposes, while the management and operations remain in the United States,” said Senator Carl Levin in a statement. “It’s become increasingly clear that a loophole in our tax laws allowing these inversions threatens to devastate federal tax receipts.”

The loophole will reportedly allow Pfizer to escape high tax rates if the deal goes ahead.

Sabrina Keith
About Sabrina Keith 108 Articles
Sabrina finished a pre-law degree from an American learning institution. She has written several articles concerning constitutional law.