Pfizer, Allergan to Call Off Merger on Tighter Tax Rules

Pfizer  (PFE) - Get Report  and Allergan (AGN) - Get Report have called off their merger. This is a major victory for President Barack Obama as he drives to stop tax inversions. The tax inversion allows U.S. based companies to acquire those overseas and then the buying company could pay the lower overseas country taxes. The $160 billion deal between Pfizer and Allergan would have been the largest tax inversion in history. The Department of Justice is expected to sue to stop a merger between two energy giants. The New York Post and others report that the lawsuit to stop Halliburton (HAL) - Get Report and Baker Hughes (BH) - Get Report is expected to be filed this week. The $35 billion dollar acquisition would combine the 2nd and 3rd largest oil field service companies. Meanwhile, oil prices are higher this morning after Reuters reported that the Kuwaiti OPEC Governor said a deal may be reached on output during the next meeting April 17th.