RE:Isn't the deal much more significant than a tax arrangement.Yeah sure, they can still go ahead. But if I were them, I'd shift the merger to Canada. The US tax rate is 35%+ up to 12% state/local where Canada is 15% federal + 11-16% provincical. You'd be saving around 15% a year on your tax bill. If you think you're going to make 200M in year 3 (according to their projections), well, do the math ...
But I'm unsure of the rules regarding what happens when you initially satisfy the treasury department regulations regarding business activity and then start violating it years later. Like, if Yosprala does get approved and then shifts most business activity back to the US, does ARLZ then now have to pay US rates again - even though when ARLZ was incorporated in Canada, it satisfied the activity rules upon inception? Need a law degree to figure this all out ....