(IndustryWeek – AFP)
The U.S. Treasury took action Monday to halt a rising torrent of U.S. companies moving offshore to cut their tax bills, saying the surge in so-called inversions threatened government income.
The move to close loopholes that encourage companies to merge with a foreign firm and relocate their tax residences offshore could stifle takeovers announced this year worth hundreds of billions of dollars.
Those include several high-profile medical industry deals, including AbbVie’s $55 billion purchase of Shire and Medtronic’s $43 billion merger with Covidien, as well as Burger King’s$11 billion tie-up with Tim Hortons, and Chiquita Banana’s proposed $1 billion merger with rival Fyffes. Read more here.