EU OKs Merck/Schering-Plough Merger

BRUSSELS (TheStreet) -- Merck's(MRK Quote) acquisition of Schering-Plough (SGP Quote) received approval Friday from the European Union.

In a statement, the European Commission said it "concluded that the proposed transaction would not significantly impede effective competition" in Europe. The commission found there were no overlaps in human health products under development by the companies, and animal health overlaps were removed when Merck sold its 50% stake in the Merial jont venture to Sanofi-Aventis(SNY Quote).

Merck reported on Thursday that profit surpassed Wall Street targets on the back of strong diabetes drug sales. It also benefited from unloading the Merial veterinary drug business for $1.7 billion in after-tax profit.

Merck's acquisition of Schering-Plough would make it No. 2 in the world in prescription drugs, behind Pfizer(PFE Quote).

-- Reported by Joseph Woelfel in New York .

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