AbbVie, Shire call off deal over US tax rule change

AbbVie and Shire agreed to terminate what would have been the biggest US tax inversion after AbbVie pulled its support for the deal in the wake of proposed changes to US rules governing such transactions.

AbbVie, based in North Chicago, Illinois, planned to buy Shire for an estimated $52 billion (€40.8bn), then move the combined company’s legal address to the UK to lower its tax bill and access cash trapped overseas.

After confirming the deal was dead, the drugmaker announced a $5bn share buyback over the next few years and increased its quarterly dividend by 17% to 49 cents per share.