EU Approves Merck Takeover Of Schering-Plough

RAF CASERT

BRUSSELS (AP) — The European Union approved Merck & Co.'s proposed takeover of Schering-Plough, which would create the second-biggest global producer of prescription medicines.

The EU's antitrust authorities said in a statement Friday that the "transaction would not significantly impede effective competition" in Europe.

The $41.1 billion acquisition of smaller Schering-Plough Corp. will allow Merck to leapfrog to No. 2 worldwide in prescription medicine, just behind Pfizer Inc., which last week bought Wyeth for $68 billion. The new Merck-Schering company would have about $42.4 billion in annual sales.

"Approval from the European Commission marks a key milestone for the completion of our transaction with Schering-Plough," Merck President and CEO Richard T. Clark said in a statement.

The two companies hope to close the deal in the fourth quarter after shareholders approved it on Aug. 7. The deal still needs approval from the U.S. Federal Trade Commission.

The EU said the overlap would not pose significant problems in Europe even though both companies have operations in prescription pharmaceuticals.