Amazing! Pfizer's $146 billion acquisition of GSK?

Source: e-medicine Manager / Chu Minhua On May 22, 2015, Pfizer spent $17 billion to buy hospita (heshengrui) at the beginning of 2015 No one thought that Pfizer's appetite would be full, and no one thought that he would launch another big merger Just who is the target of the merger? Everyone's eyes are on those with a valuation of more than $100 billion Previously, Ian read, Pfizer's CEO, repeatedly said he was eager to boost sales with big deals What's more, read's acquisition is on the other side of the Atlantic: after AstraZeneca formally refused to marry, GSK, the UK's largest pharmaceutical company, seems to be one of Pfizer's few eligible targets According to a report from Deutsche Bank analyst Gregg Gilbert on May 20, the acquisition of GlaxoSmithKline will bring "great value added" to Pfizer's revenue Such a big deal would also allow Pfizer to acquire a large amount of assets and reduce taxes The price could be 95 billion pounds ($146 billion) So far, however, Pfizer has not announced an offer to GlaxoSmithKline or disclosed its intention to acquire the company The reason for everyone's brain hole is very normal: the amount of this merger may break the record! No matter who the other protagonist is, this M & A case has attracted much attention The merger will affect a wide range of employees and markets "We believe that the company (Pfizer) has a sense of urgency to increase its assets and create value through big leapfrog acquisitions," Gilbert said After re analysis, we think it is likely that Pfizer and GlaxoSmithKline will merge "Gilbert and his colleagues gave a guideline price for the acquisition: 1924 pence per share, which is equivalent to a total price of £ 95 billion, or about $146 billion (GlaxoSmithKline closed yesterday at 1447.50 pence per share) The report also gives the acquisition method, half cash general equity Gilbert also painted a wonderful vision for Pfizer: once the acquisition is completed, Pfizer's EPS will rise 10-16% next year More than one analyst has expressed skepticism about the report Andrew Baum, an analyst at Citigroup in London, said, "we suspect GSK is a viable acquisition target for Pfizer "Baum's view is that while Pfizer can use its overseas cash to acquire GSK and therefore reduce its tax rate, the UK government should want GSK to exist as an independent listed company GlaxoSmithKline is bigger than AstraZeneca It is the largest pharmaceutical company in the UK and plays an important role in the pharmaceutical industry in the UK Andrew witty, GlaxoSmithKline's CEO, is also under pressure The company lagged behind its competitors in both performance and revenue growth in the stock market GlaxoSmithKline's bribery scandal in China last year also brought it $489 million in fines GlaxoSmithKline's share price has fallen 11% in the past year, compared with a 31% increase in the Bloomberg European Pharmaceutical index On May 6, witty presented his strategy to investors, planning to abandon the division of the company's HIV drug business and reduce dividends returned to shareholders The company will choose to retain funds to enhance its growth Pfizer is in the process of another acquisition In February, the company agreed to buy Hershey for about $17 billion Hershey focuses on injection drugs, and Pfizer hopes the deal will strengthen its generic business, which will then be ready to spin off.