(Bloomberg) Mylan Inc. is buying Abbott Laboratories’ generic-drug business and forming a new company that will be incorporated in the Netherlands, allowing for a lower-cost tax base.

Abbott will get 21 percent of the new organization, a share valued at about $5.3 billion, the Abbott Park, Illinois-based company said today in a statement. Setting up in the Netherlands will drop Mylan’s tax rate below 21 percent in the first year, subsequently declining to the high teens. The company will be run by Mylan’s executive team from Pittsburgh, where Mylan’s headquarters are now located.

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