AbbVie Inc., North Chicago, Ill., plans to acquire Allergan PLC, Dublin, which would create a combined company with about $13.8 billion in retirement plan assets.
According to a joint news release from the pharmaceutical companies on Tuesday, AbbVie will acquire Allergan in a cash and stock transaction valued at about $63 billion, based on the closing price of $78.45 of AbbVie stock on Monday.
The combined company to result from the transaction, which is expected to close in early 2020, would retain the AbbVie name. The news release did not mention how, or whether, retirement plan assets would be merged.
As of Dec. 31, AbbVie's defined benefit plan assets totaled $5.6 billion, according to the company's most recent 10-K filing. Complete actual asset allocation information was not provided in the filing.
AbbVie's defined contribution plan assets totaled $4.9 billion, according to the company's most recent 11-K filing. The plan's record keeper is Alight Solutions, and the plan features 12 investment options, two common stock funds and a target-date fund lineup managed by State Street Global Advisors.
As of Dec. 31, Allergan's defined benefit plan assets totaled $1.1 billion, according to the company's most recent 10-K filing.
As of that same date, the actual allocation of the plans, which were all frozen to benefit accruals at the end of 2018, was 75.2% fixed income, 18.2% international equities, 6.2% U.S. and other equities, and the rest in cash.
As of Dec. 31, Allergan's defined contribution plan assets totaled $2.2 billion, according to the company's most recent 11-K filing. The plan's record keeper is Fidelity Investments, and the plan features 12 investment options, a common stock fund, a self-directed brokerage option and a target-date fund lineup managed by Vanguard Group.
Amy Rose, Allergan spokeswoman, said no discussions have begun regarding retirement plan assets as of today.
Adelle Infante, AbbVie spokeswoman, could not be immediately reached to provide further information.
