Citing slower hiring, Merck to exit city, state incentive deals for Austin IT hub

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Austin City Hall_218003

Austin City Hall

AUSTIN (Austin Business Journal) — Austin’s only economic development incentive deal in the last five years is no more.

Merck & Co. Inc. in the past two weeks moved to exit its Chapter 380 agreement with Austin city government and terminate its agreement for a Texas Enterprise Fund grant, according to city, state and company representatives.

Merck (NYSE: MRK) confirmed July 2 it was exiting the incentives deals, which were struck in 2017 to help the pharmaceutical company open an information technology hub in the Texas capital. The company is leaving close to $7 million on the table by voluntarily exiting the agreements — representing a rollback of expectations for what was once lauded as a major success story for the health care sector in Austin.

To read the full article, visit Austin Business Journal.

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