Mylan Moves Headquarters Overseas To Save Money On Taxes
Maybe once enough companies move their headquarters overseas congress will pay attention.
I don’t have any ill will towards Mylan over this.
This is all the federal governments fault.
Check it out:
Abbott Laboratories ABT +2.05% said it would sell a portion of its generics pharmaceuticals business to Mylan Inc. MYL -0.70% in an all-stock transaction valued at $5.3 billion that is the latest example of a health-care deal driven in part to seek tax advantages.
Abbott will receive about a 21% stake, or 105 million shares, of a newly formed entity that will combine Mylan’s existing business and Abbott’s generic pharmaceuticals business in developed markets not including the U.S. The new entity will be organized in the Netherlands, enabling the company to benefit from a lower tax rate.
Mylan expects its global effective tax rate to move from 25% to approximately 21% in its first full year, and then expects that it will come down further to the high-teens over time, Mylan Chief Financial Officer John Sheehan said on a conference call with analysts.
Seeking a more competitive tax structure has been a common theme in the pharmaceutical industry this year as a number of U.S. companies have acquired, or tried to purchase, counterparts in Europe through so-called inversion deals that allow them to lower their corporate tax burden.