3 Mega Mergers That Might Not Happen

A buyout deal is one of the most exciting pieces of news that a shareholder can get when it comes to the future of a stock. However, shareholders of Allergan (AGN), Baker Hughes  (BHI) and Office Depot (ODP) all currently have their buyout dreams hanging in the balance.

Allergan (AGN)

Allergan185Back in November, Pfizer (PFE) announced a massive $160 billion buyout of AGN at a price of around $345 per share. However, even with the deal originally expected to close by the end of 2016, AGN’s stock is still trading about 23.5% below the buyout price.

Why? The combination of PFE and AGN would be the largest merger in the history of the healthcare sector. In fact, the combined company could end up as one of the five largest companies in the world by market cap. With a deal this size, it’s no surprise that there will be intense antitrust scrutiny.

Drug pricing has been a popular topic in the U.S. presidential campaign season, and Democratic candidate Bernie Sanders recently called out this deal specifically as a “tax scam.” Sanders even urged the U.S. Treasury to block the deal for Allergan stock.

If the political backlash against tax inversion deals continues to gain momentum the tax structure, not the antitrust concerns, could end up being the death knell for this massive merger.

Baker Hughes (BHI)

While scrutiny about the AGN/PFE deal seems…

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