Merck & Co.’s proposed $41.1 billion merger with Schering-Plough Corp. announced today would result in combined defined benefit assets of $5.4 billion and $5.7 billion in total defined contribution assets.
Merck, Whitehouse Station, N.J., has $4.22 billion in defined benefit assets and $3.55 billion in a 401(k) plan, according to Pensions & Investments. Schering-Plough, Kenilworth, N.J., has $1.19 billion in defined benefit assets and $2.1 billion in defined contributions.
Merck’s DB plan has 51% of its assets in domestic equity, 25% in international equity, 18% in fixed income, 3% in international fixed income and 3% in cash equivalent, according to P&I. The company’s DC plan was in a 401(k) plan with 46% domestic stock, 19% company sponsoring stock, 14% international stock, 11% cash equivalent and 10% fixed income.
Merck’s DB managers are T. Rowe Price, Brandywine, SSgA, Schneider, AXA Rosenberg, Wellington, DFA, AllianceBernstein, Fisher, GMO, Jennison, Wells Capital, and Income Research & Management.
Merck’s DC managers are Fidelity, SSgA, T. Rowe Price, Columbia, AXA Rosenberg, Capital Group, Fidelity and PIMCO.
“It’s too early to say what will happen to the pension plans, given that the deal is not expected to close until the fourth quarter,” said Schering-Plough spokesman Stephen Galpin.
Information about Schering-Plough’s asset mix and managers was not immediately available.
A spokeswoman for Merck was not immediately available for details on possible plans for combining the companies’ retirement assets.
