Pfizer, Allergan Call Off Proposed $160 Billion Merger After New Tax Rules Issued

NEW YORK (AP) — Allergan and Pfizer are calling off a record $160 billion merger after the Treasury issued new rules to make "tax inversions" less lucrative.

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The aggressive changes to U.S. tax laws announced this week helped to kill the deal. The merger would have moved Pfizer's address — but not its operations or headquarters — to Ireland where it would pay far less in corporate taxes.

Pfizer Inc., based in New York, has agreed to pay Allergan PLC $150 million for reimbursement of expenses.