Merck Withdraws FTC Filing For Schering Deal, To Re-File
May 19 2009 - 10:18AM
Dow Jones News
Drug maker Merck & Co. (MRK) said it withdrew its initial
filing for U.S. antitrust clearance of its proposed $41 billion
purchase of Schering-Plough Corp. (SGP), but plans to re-file with
additional information as soon as possible.
Merck, based in Whitehouse Station, N.J., still expects to close
the acquisition by end of the year, spokesman David Caouette told
Dow Jones Newswires. He declined to specify the additional
information Merck will provide or what led to the withdrawal of the
initial filing.
In April, Merck filed information about its proposed acquisition
with the U.S. Federal Trade Commission under the Hart-Scott-Rodino
Act, which is designed to give the government time to review deals
and ensure they aren't anti-competitive. Sometimes the FTC requires
asset divestitures if two companies have overlapping
businesses.
A 30-day waiting period for Merck's filing was set to expire
Monday, May 18, Caouette said. But Merck decided to withdraw the
filing Monday and will re-file soon, which will trigger another
30-day waiting period, he said.
"We believe the re-filing for us will provide a productive
review process," said Caouette. "Other parties have taken similar
actions in past transactions. We decided to re-file as part of our
efforts to cooperate with the FTC in their review of the
transaction."
Even when the new 30-day waiting period expires, it could be
followed by a so-called second request for information from the
FTC, which is relatively routine. In April, Pfizer Inc. (PFE)
received a request for more information about its proposed
acquisition of Wyeth (WYE).
An FTC spokesman couldn't immediately be reached.
-Peter Loftus; Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com