Merck & Co., Inc. and Schering-Plough Corporation have announced a definitive merger agreement under which the companies Merck and Schering-Plough will combine, under the name Merck, in a stock and cash transaction.
Merck Chairman, President and Chief Executive Officer Richard T. Clark will lead the combined company. Upon closing of the transaction, Merck shareholders are expected to own approximately 68% of the combined company, and Schering-Plough shareholders are expected to own approximately 32%.
“We are creating a strong, global healthcare leader built for sustainable growth and success,” said Clark. “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. The efficiencies we gain will allow us to invest in strategic opportunities, while creating meaningful value for shareholders.
“We look forward to joining forces with an outstanding partner we know well and that shares our commitment to patients, employees and the communities where we work and live. Through their talent and dedication, Schering-Plough employees have built an industry leading R&D engine and late-stage pipeline that is complementary to our own. We are confident that, together, Merck and Schering-Plough will make a meaningful difference in the future of global healthcare,” Clark added.