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Salix, Cosmo abandon merger

October 4, 2014 1:58 AM UTC

Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) and Cosmo Pharmaceuticals S.p.A. (SIX:COPN) said they have ended their merger agreement. The two companies had envisioned financial benefits from domiciling the combined entity in Ireland.

Under the July agreement, Salix would have become a NASDAQ-listed subsidiary of Cosmo Technologies Ltd., an Irish subsidiary of Cosmo Pharmaceuticals. Salix said the deal would reduce its effective tax rate from the high 30% range to the low 20% range. The deal was announced amid rising political controversy over U.S. companies using inversion and other offshore strategies to lower their taxes. ...