AbbVie to review Shire takeover after tax law change

Chicago-based AbbVie has said it is reconsidering its $55bn (€43.4bn) takeover of Shire weeks after the US government moved to curb deals designed to reduce tax, wiping $13bn off the London-listed firm’s stock price.

AbbVie said late on Tuesday that it was responding to the US proposals, which aim to make it harder for American firms to shift their tax bases out of the US and into lower-cost jurisdictions in Europe.

AbbVie’s move for Shire, a leader in drugs to treat attention deficit hyperactivity disorder (ADHD), was announced in July amid a spate of similar takeover deals within the US and European pharmaceutical sector.