Darmstadt, Germany, August 27, 2015 – Merck KGaA, Darmstadt, Germany, a leading company for innovative, top-quality high-tech products in healthcare, life science and performance materials, successfully placed euro bonds today via Merck Financial Services GmbH, a subsidiary of Merck KGaA, Darmstadt, Germany. This serves the financing of the proposed acquisition of the U.S. life science company Sigma-Aldrich.

In total, three tranches were placed: a floating rate note with a maturity of two years amounting to € 700 million, with a 0.23% spread over 3-month EURIBOR. In addition, two fixed rate notes with a maturity of four years (€ 800 million for 0.75%) and seven years (€ 550 million for 1.375%) were placed as well.

“This euro bond transaction completes our capital markets activities for the financing of the proposed Sigma-Aldrich acquisition. Overall, with our financing measures, we were able to approach a wide range of different investors. The success of all our bond placements clearly shows that our company is well-positioned with its conservative financing policy,” said Marcus Kuhnert, Chief Financial Officer of Merck KGaA, Darmstadt, Germany.

The eurobond transaction was heavily oversubscribed and achieved a well-diversified distribution among a wide range of institutional investors such as fund managers, insurance companies, pension funds, and banks. Bookrunners of the transaction were the company’s relationship banks.

In December 2014, Merck KGaA, Darmstadt, Germany, had already issued a euro hybrid bond amounting to € 1.5 billion to finance the planned acquisition. In March 2015, the company then placed a U.S. bond amounting to US$ 4.0 billion.

The planned acquisition of Sigma-Aldrich for approximately US$ 17 billion, which was announced in September 2014, is a key element of the comapny’s “Fit for 2018” transformation and growth program. Recently, Merck KGaA, Darmstadt, Germany, announced that it had received all the antitrust clearances required for the acquisition. The company aims to complete the transaction in the third quarter of 2015. Certain conditions stipulated by the EU Commission must still be met. According to these, Merck KGaA, Darmstadt, Germany, and Sigma-Aldrich must sell parts of Sigma-Aldrich’s solvents and inorganics business in Europe.

Merck KGaA, Darmstadt, Germany, is rated A flat (negative outlook) by Standard & Poor’s Rating Services and Baa1 (negative outlook) by Moody’s Investors Services Limited.

Cautionary Note Regarding Forward-Looking Statements

This communication may include “forward-looking statements.” Statements that include words such as “anticipate,” “expect,” “should,” “would,” “intend,” “plan,” “project,” “seek,” “believe,” “will,” and other words of similar meaning in connection with future events or future operating or financial performance are often used to identify forward-looking statements. All statements in this communication, other than those relating to historical information or current conditions, are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond control of Merck KGaA, Darmstadt, Germany, which could cause actual results to differ materially from such statements.
Risks and uncertainties relating to the proposed transaction with Sigma-Aldrich Corporation ("Sigma-Aldrich") include, but are not limited to: the risk that regulatory or other approvals required for the transaction are not obtained or are obtained subject to conditions that are not anticipated or that are difficult to satisfy; competitive responses to the transaction; litigation relating to the transaction; uncertainty of the expected financial performance of the combined company following completion of the proposed transaction; the ability of Merck KGaA, Darmstadt, Germany, to achieve the cost-savings and synergies contemplated by the proposed transaction within the expected time frame; the ability of Merck KGaA, Darmstadt, Germany, to promptly and effectively integrate the businesses of Sigma-Aldrich and Merck KGaA, Darmstadt, Germany; the effects of the business combination of Merck KGaA, Darmstadt, Germany, and Sigma-Aldrich, including the combined company’s future financial condition, operating results, strategy and plans; the implications of the proposed transaction on certain employee benefit plans of Merck KGaA, Darmstadt, Germany, and Sigma-Aldrich; and disruption from the proposed transaction making it more difficult to maintain relationships with customers, employees or suppliers.
Additional risks and uncertainties include, but are not limited to: the risks of more restrictive regulatory requirements regarding drug pricing, reimbursement and approval; the risk of stricter regulations for the manufacture, testing and marketing of products; the risk of destabilization of political systems and the establishment of trade barriers; the risk of a changing marketing environment for multiple sclerosis products in the European Union; the risk of greater competitive pressure due to biosimilars; the risks of research and development; the risks of discontinuing development projects and regulatory approval of developed medicines; the risk of a temporary ban on products/production facilities or of non-registration of products due to non-compliance with quality standards; the risk of an import ban on products to the United States due to an FDA warning letter; the risks of dependency on suppliers; risks due to product-related crime and espionage; risks in relation to the use of financial instruments; liquidity risks;
counterparty risks; market risks; risks of impairment on balance sheet items; risks from pension obligations; risks from product-related and patent law disputes; risks from antitrust law proceedings; risks from drug pricing by the divested Generics Group; risks in human resources; risks from e-crime and cyber attacks; risks due to failure of business-critical information technology applications or to failure of data center capacity; environmental and safety risks;
unanticipated contract or regulatory issues; a potential downgrade in the rating of the indebtedness of Merck KGaA, Darmstadt, Germany, or Sigma-Aldrich; downward pressure on the common stock price of Merck KGaA, Darmstadt, Germany, or Sigma-Aldrich and its impact on goodwill impairment evaluations; the impact of future regulatory or legislative actions; and the risks and uncertainties detailed by Sigma-Aldrich with respect to its business as described in its reports and documents filed with the U.S. Securities and Exchange Commission (the “SEC”).
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included elsewhere, including the Report on Risks and Opportunities Section of the most recent annual report and quarterly report of Merck KGaA, Darmstadt, Germany, and the Risk Factors section of Sigma-Aldrich’s most recent reports on Form 10-K and Form 10-Q. Any forward-looking statements made in this communication are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. Except to the extent required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.


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