Merck and Schering-Plough to merge

Merck and Schering-Plough are to create a “strong, global healthcare leader built for sustainable growth and success” in a $41.1 billion conversion merger, it has been announced.

Both the firms’ boards of directors unanimously approved a definitive agreement under which the two companies will join under the name Merck.

President and chief executive officer of Merck Richard T Clark will lead the united company. He asserted the efficiencies gained will allow the business to invest in strategic opportunities.

“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,” he commented.

Mr Clark added the two firms would together make a “meaningful difference” to the future of the industry.

Chairman and chief executive officer of Schering-Plough Fred Hassan stated he is proud of what the company has achieved in the last few years.

He continued to note that the joint venture would create a “dynamic new leader in the pharmaceutical industry”.

It is expected that Merck shareholders will own approximately 68 per cent of the combined company, while those with Schering-Plough stocks will possess around 32 per cent.

Merck was established in 1891.