PharmExec Blog

Merck/Schering-Plough Merger Highlights (Update 1)

Merck and Schering-Plough’s CEOs are giving a run down of the benefits of the $41.1 billion merger, announced this morning, in a conference call with investors. Here are some of the highlights:

• Total price of the sale will be $41.1 billion or $23.6 per Schering share.

• This deal is structured as a reverse merger with Schering being renamed Merck. This is being done to avoid triggering a loss of rights, according to Merck.

• To pay for the merger, Merck is taking out a $3 billion 364-day bridge loan  and adding $5.5 billion in revolving credit. The company will be fronting $9.8 billion in cash, and another $22.8 billion will stem from merck stock.

• Schering share holders will own 32 percent of the new combined company, while Merck shareholders will  own 68 percent of the company.

• Joint company expects to save approximately $3.5 billion by 2011.

• There will be a job freeze for both companies beginning this morning.

• Complete transaction by Q4 2009.

• Remicade distribution rights between Schering and Johnson & Johnson are not expected to be in question, but Merck is prepared in case of legal problems. Question as to whether there will be a change of control.

• Synergies have not been defined beyond potential savings.

• Very little overlap in compounds with the exception of two late-stage programs in Hepatitis C and one other.

• Merck will gain access to Schering’s massive animal health product portfolio.

• Joint company will reside at Merck’s Whitehouse Station, New Jersey location.

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2 Comments

  1. Mandi
    Posted March 11, 2009 at 6:53 pm | Permalink

    Interesting enough, there were lots of insider transactions on March 4th, i.e. 4 days before the merger was announced in public!

  2. Posted August 27, 2009 at 11:48 am | Permalink

    You have to hire a securities attorney who has the anwers of all your inquiries pertaining to the plan of taking the company public. You need to have a clear and confident guidance in order to get through the filing process.

2 Trackbacks

  1. By Reverse Merger | My News on March 9, 2009 at 8:45 am

    [...] Merck/Schering-Plough Merger Highlights [...]

  2. By Merck Merger | What's Happening Now! on March 9, 2009 at 10:46 am

    [...] Merck/Schering-Plough Merger Highlights [...]

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