EU approves Merck, Schering-Plough tie-up

The European Union on Friday approved the proposed tie-up of U.S. drug makers Merck & Co. and Schering-Plough Corp. 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 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.

The two companies hope to fully 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.