Merck announces new $15 billion share repurchase program
Posted: 1 May 2013 | | No comments yet
Merck’s board of directors has authorized additional purchases of up to $15 billion of Merck’s common stock for its treasury.
Merck (NYSE: MRK), known as MSD outside the United States and Canada, today announced that its board of directors has authorized additional purchases of up to $15 billion of Merck’s common stock for its treasury. The company expects to repurchase approximately $7.5 billion of common stock over the next 12 months, financed through a combination of debt issuance and operating cash flows, with the remainder to be repurchased over time with no time limit. Purchases may be made in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions.
“This share repurchase program, combined with our strong dividend, reinforces our continued commitment to delivering increased value to shareholders,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “At the same time, we remain committed to maintaining a strong balance sheet and financial position that enables the company to invest in research and development and other growth-oriented opportunities. This action also reflects the board’s confidence in our long-term growth strategy and the company’s future performance.”
In the first four months of 2013, Merck repurchased approximately 17.8 million shares for a total of $772 million. With today’s announcement, the company’s total outstanding share repurchase authorization is now $16.1 billion, which includes $1.1 billion in authorized repurchases remaining under the program previously announced on April 27, 2011.
