While no deals have been called off, announced and potential targets for deals in the pharmaceutical and health care industries saw their shares fall today, one day after the Treasury Department announced new rules to discourage such so-called inversions.
The Treasury Department is trying to stem the tide of deals that take U.S. companies overseas for tax purposes.
The Treasury Department will “make a decision in the very near future” on adminstrative action to “to make these deals less economically appealing.”
Daniel Schwartz, Burger King’s CEO, repeatedly said that tax savings from the deal were minimal and not a driver of the deal. But while that may be true today, the more the company grows overseas, the better deal it gets from being Canadian.