teaser
Merck & Co and Schering-Plough are to hold talks with stockholders over their pending merger in August.
If approved, the $41.1 billion (£25bn) alliance would form the world’s second-largest prescription drug maker.
Documents issued to the Securities and Exchange Commission stated the companies intentions to meet with shareholders to get approval of the deal.
Shareholders New Jersey-based Merck will meet at the Bridgewater Marriott, while Schering-Plough, also New Jersey-based, will meet in Boston to discuss the merger.
The two companies already have a partnership selling the cholesterol drugs Vytorin and Zetia, but this latest deal would unite Merck and Schering-Plough to bring all their products together.
Schering-Plough will adopt the better known name Merck, but it is thought the deal is in the best interest of Merck, which has seen its sales slow with the rise of competition from generic drugs.
The proposed deal would diversify Merck with the acquisition, while Schering-Plough will add strength in the valuable area of biologic drugs, which are made from living cells and command high prices.
Copyright Press Association 2009
