Shire sees Baxalta deal proceeding despite US tax rules

Pharmaceuticals firm Shire said it expected its $32bn (£22.6bn) merger with Baxalta to go ahead despite new US tax rules stopping the $160bn deal between Pfizer and Allergan.

In a statement, Shire said it expected the Baxalta transaction would proceed as originally announced on January 11, 2016.

“The combination of Shire and Baxalta is based on a strong strategic rationale to create the leading global biotechnology company focused on rare diseases,” Shire said.

“The company currently expects to complete its proposed combination by mid-2016 as previously announced.”

The US Treasury has stopped US firms adopting a foreign address for tax reasons through an acquisition.