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Market Chatter: Banks Arrange US$15.6 Bln in Financing for Merck to Buy Sigma-Aldrich, Reuters Says

Banks have arranged US$15.6 billion in financing for German pharmaceutical company Merck KGaA's (MRK.DE) acquisition of U.S. chemicals firm Sigma-Aldrich Corp. (SIAL.O), Reuters reported Tuesday, citing banking sources.

Underwriting the financing are Deutsche Bank, JP Morgan and Societe Generale, Reuters said. It includes US$4 billion of three-year term loans and an US$11.6 billion bridge loan that will be refinanced through the bond market, the banking sources said, according to Reuters.

Merck agreed on Monday to buy St. Louis-based Sigma-Aldrich for US$17 billion in cash at US$140 per share.

Merck was trading up 1.48% at 73.47 euros per share in Frankfurt on Tuesday. Sigma Oldrich closed up 33.2% on Monday at $136.40 per share in New York.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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