(RTTNews) -  Thursday, Pharmaceutical giant Merck & Co. Inc.'s (MRK: News ) proposed $41 billion cash-and-stock acquisition deal of rival Schering-Plough Corp. (SGP: News ) was approved by the U.S. Federal Trade Commission, the Swiss Competition Commission and the Canadian Competition Bureau.

The three regulates mergers within their respective countries to avoid anticompetitive effects arising from conglomerate mergers within their countries.

Earlier on October 23, the proposed merger of Merck and Schering-Plough received anticompetitive clearance from the European Commission regulators.

Since Merck and Schering sell their products to consumers in the U.S., Canada, and also in European Union exceeding given thresholds, it is mandatory for the companies to get approval from these regulators. The regulators were concerned that the tie-up would significantly impede effective competition, particularly in the field of products for asthma and allergic rhinitis.

However, the companies said today that the FTC and the Canadian Competition Bureau terminated the waiting period and cleared the pending merger.

Commenting on the approvals, chairman, president and chief executive officer of Merck, Richard Clark said, "Clearances from the FTC, the Swiss Competition Commission and the Canadian Competition Bureau mark significant steps in the completion of our merger with Schering-Plough. As we work with regulators on the remaining approvals necessary for the close, we stand ready to serve patient needs as a new global healthcare leader."

The transaction, however, still remains subject to approval from other regulators, including China and Mexico.
In March, Merck agreed to buy Schering-Plough in a $41.1 billion stock and cash transaction. The deal terms provides Schering-Plough shareholders with 0.5767 shares of Merck and $10.50 in cash, and the aggregate consideration will comprise a combination of about 56% stock and 44% cash. Earlier in the month, both Merck and Schering-Plough shareholders approved the merger.

The proposed merger got shareholders approval with 99% majority voting on July 8. On the same day, Schering-Plough also approved the takeover deal.

Merck is research-driven pharmaceutical company active in pharmaceuticals and vaccines, while Schering-Plough is a science-based healthcare company, active in human prescription pharmaceuticals, animal health and over-the-counter, consumer healthcare.

The estimated $41 billion cash-and-stock deal between Merck and Schering-Plough has been structured as a reverse merger. Under the reverse merger, Merck would technically become a wholly owned subsidiary of Schering even though it is Merck, which is acquiring Schering. The combined company will be headed by Merck chief executive officer Richard Clark.

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