Merck acquires Schering-Plough
This article was originally published in The Rose Sheet
Executive Summary
Pharma company Merck says it plans to keep Schering-Plough's $1.28 bil. consumer health division in its $41.1 bil. acquisition of the firm, announced March 9. Schering-Plough makes and markets sunscreen brands Bain de Soleil and Coppertone within its consumer business. Schering's consumer and animal health businesses could provide a diversified revenue stream and a stable source of cash flow for Merck, which primarily markets drugs. However, Johnson & Johnson has a stake in a partnership with Schering, and may pursue a counter-bid, arbitration, or a deal with Merck (Find more on this topic in 1"The Pink Sheet")