AbbVie to acquire U.K. drug maker Shire for $54B

PHOTO/rick saia AbbVie's Worcester research facility employs roughly 700 people.

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In what has been termed the biggest corporate takeover of 2014 to date, Illinois-drug maker AbbVie, which employs about 700 in Worcester at a research and development facility, has agreed to buy Dublin-based Shire in a $54 billion deal announced Friday morning.

Shire, which makes drugs that treat rare diseases, said earlier this week it was ready to recommend a deal to shareholders after AbbVie changed the terms on its fifth offer to the company, according to a report in TheStreet.com.

While AbbVie said in a statement it will keep its operational headquarters in Chicago and would maintain a strong presence in the U.S., the new AbbVie company would be incorporated in the U.K. , which is Shire's current place of incorporation. Following completion of the transaction, the new company is expected to be based in the U.K. for tax purposes. The company said the move would lower its effective tax rate to 13 percent by 2016 from 22.6 percent in 2013.Under British takeover rules, AbbVie has until today to announce a firm offer for Shire, extend the deadline for an offer or walk away. If the deal does not go through, AbbVie said it had agreed to pay Shire at least $500 million in a break-up fee, according to the joint statement.