FTC Makes Second Request of Merck and Schering-Plough

As expected, the companies have received a so-called "second request" for information on competitive overlaps -- under the Hart Scott Rodino Antitrust Improvements Act ("HSR", for short). Significantly -- apparently the companies have, as yet, made no EU Commission filing, at all -- and that is also a "tiger with a rather long tail".

What is not yet known is what areas of the businesses, other than Animal Health, are under review at FTC/DoJ. I had earlier predicted (in a reply-comment to this post) a rather broad and voluminous second request -- we may be able to infer how sweeping the second request is, by seeing how long it takes the companies to refile. Each company will very likely announce when they have complied with the second request, so that the investing public will be able to start the clock on the FTC's 30 day response time.

From Merck's presser of this morning:

. . . .Merck and Schering-Plough intend to cooperate fully with the FTC to obtain approval of the transaction as expeditiously as possible. The transaction is subject to approval by Merck and Schering-Plough shareholders and the satisfaction of customary closing conditions and regulatory approvals, including expiration or termination of the applicable waiting period under the HSR Act, as amended, as well as clearance by the European Commission under the EC Merger Regulation and certain other foreign jurisdictions. Until the merger closes, both companies will continue to operate independently. . . .

I would be surprised if this transaction clears HSR without additional requests, and additional responses, after this "intitial" second request.