Thursday, July 10, 2014

Be smart! The strategy

LONDON – Salix Pharmaceuticals of North Carolina said late Tuesday that it had struck a deal to acquire the Irish arm of an Italian drug maker, becoming the latest United States company to seek to move its headquarters abroad for tax purposes.
 
Under the deal, Salix will merge with Cosmo Technologies, the Irish unit of Cosmo Pharmaceuticals of Italy, in exchange for a stake of more than 20 percent in the combined company.
 
Salix will reincorporate in Ireland in a process known as an inversion, which will allow it to save millions of dollars in corporate taxes. The combined company will seek to be listed on Nasdaq.

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