Allergan to Return to U.S. for Tax Purposes After AbbVie Merger

Allergan Plc will move its tax residence back to the U.S. after an earlier relocation to Dublin for tax purposes as a result of AbbVie Inc.'s $63 billion acquisition of the rival drugmaker.

AbbVie will continue to be incorporated in Delaware with its executive offices in North Chicago, Ill., the company said June 25.

• Allergan is run from New Jersey but moved its tax domicile to Dublin in 2015 through another merger, partly to take advantage of lower corporate rates abroad. The 2017 U.S. tax overhaul cut corporate levies to 21% from 35%, which reduced incentives for companies to relocate overseas.
• AbbVie said it will have an effective rate of 9% this year and projected its effective rate will rise to 13%.
• Allergan shareholders will receive cash and shares valued at $188.24 per Allergan share from the acquisition, which will be taxed.

—With assistance from Drew Armstrong (Bloomberg)