NEW YORK, March 9 (UPI) -- U.S. pharmaceutical giant Merck and rival Schering-Plough said Monday their boards had agreed to a $41 billion acquisition.
The deal has similarities to Pfizer's January agreement to purchase Wyeth for $68 billion. Swiss pharmaceutical Roche is also pursuing a major acquisition, discussing a deal with Genentech, of which it is already a substantial stakeholder, The New York Times reported.
The Merck deal allows the company to consolidate research, expand in cardiovascular, respiratory and cancer drugs and take advantage of Schering-Plough's international presence.
About 70 percent of Schering-Plough's sales come from foreign markets, the Times said.
The deal would give Schering-Plough shareholders 0.5767 shares and $10.50 in cash for each share they currently own. The deal includes a premium of 34 percent above Schering-Plough's closing Friday price of $23.61 per share.
If approved, Merck shareholders will end up with 68 percent of the combined company.
