Monday, 9 March 2009

Merck takes over Shering-Plough

(CNN) -- Pharmaceuticals giants Merck and Schering-Plough are planning to merge their operations under the name Merck in a deal worth $41.1 billion.

Under the terms of the agreement, Schering-Plough shareholders will receive just over half a Merck share and $10.50 in cash for each Schering-Plough share they own. Each Merck share will automatically become a share of the combined company.

Merck shareholders are expected to own approximately 68 percent of the combined company, and Schering-Plough shareholders are expected to own approximately 32 percent.

Merck Chairman, President and Chief Executive Officer Richard T. Clark will lead the combined company.

"We are creating a strong, global healthcare leader built for sustainable growth and success," Clark said in a media statement Monday. "The combined company will benefit from a formidable research and development pipeline, a significantly broader portfolio of medicines and an expanded presence in key international markets, particularly in high-growth emerging markets.

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