Category Archives: PRGO

Medtronics acquire Covidien as a tax inversion take over….who could be next?

Big slow growing Pharma companies in the US looking to enhance earnings by acquiring European (UK or Ireland mainly) companies and lowering their corporation tax.US Corporation tax still among the highest in the world!

Next acquisition target could possible be Perrigo (NYSE:PRGO), based in Ireland (12.5% Corp tax!)

Perrigo trades on a similar 5Y implied growth of around 20% to Covidien – which is a bit expensive relative to expected earnings growth of 15% over 5 years.

All the experts say ‘Investments should NOT be made on the basis of a takeover’ but fundamentals, so would hold if you are long but not advocating a buy!