The major pharmaceutical companies Pfizer and Allergan are considering a merger that would be largest coming together of two drug companies ever in recorded history.

If the two companies do combine, they would have a joint value of almost $400 billion and a market cap in excess of $300 billion.

Other reports have Pfizer taking over Allergan rather than the two companies merging. Even if that happens, it would still become the fourth largest deal ever.

Reports indicate that action could take place in mere weeks. However, there are still issues that need to be sorted out.

Pfizer approached Allergan about making the deal. Allergan currently has a market cap of roughly $112.5 billion.

Other major pharmaceutical companies have merged in the past. Allergan is already comprised of Forest Labs, Watson, Warner Chilcott, Actavis and its main company of Allergan.

By completing this deal, the companies will essentially be able lock in their high stock prices, and they will be able to better manage their debt.

Additionally, Pfizer could use the merger as a means of lowering its corporate tax rate. This is because Allergan is based in Ireland, where the corporate tax rate is substantially lower than that of the United States.

Analysts expect that the deal would be approved by regulatory officials. However, the Federal Reserve would certainly keep a close eye on such a major merger or acquisition.

Pfizer is perhaps best known for making erectile dysfunction medication Viagra, while Allergan is the maker of Botox. Pfizer also makes Advil, Zoloft, Robitussin and Chapstick, while Allergan is also known for Restasis.

Meanwhile, another major merger is taking place in the beer industry, as AB InBev is still mulling over a corporate takeover of SABMiller. Such a deal would bring together the two largest beer makers in the world to form an unprecedented brewery giant.

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