( CNN ) -- Pharmaceuticals giants Merck and Schering-Plough are planning to merge their operations under the name Merck in a deal worth $ 41.1 billion . Merck chairman and CEO Richard T. Clark will head the combined company . Under the terms of the agreement , Schering-Plough shareholders will receive just over half a Merck share and $ 10.50 in cash for each Schering-Plough share they own . Each Merck share will automatically become a share of the combined company . Merck shareholders are expected to own approximately 68 percent of the combined company , and Schering-Plough shareholders are expected to own approximately 32 percent . Merck Chairman , President and Chief Executive Officer Richard T. Clark will lead the combined company . `` We are creating a strong , global healthcare leader built for sustainable growth and success , '' Clark said in a media statement Monday . `` The combined company will benefit from a formidable research and development pipeline , a significantly broader portfolio of medicines and an expanded presence in key international markets , particularly in high-growth emerging markets . `` We look forward to joining forces with an outstanding partner we know well and that shares our commitment to patients , employees and the communities where we work and live . '' Merck added that its 2009 outlook has not changed , and it is committed to keeping its annual dividend at its current level of $ 1.52 per share . Both drug-makers reported better-than-expected quarterly results in early February , but announced steep job cuts . On a conference call with investors on February 3 , Clark said the drug-maker was open to a takeover of a large pharmaceutical company .
SP shareholders to get over half a Merck share and $ 10.50 in cash per share . Merck shareholders expected to own around 68 percent of combined company . Both drug-makers reported better-than-expected quarterly results in February .