Net debt, defined as financial liabilities less cash of the Merck Group, amounted to €355 million on December 31, 2007. As a result, after just one year Merck repaid the debt resulting from the purchase of Serono using the proceeds from the capital increase and the proceeds from the disposal of the Generics division (for more information on financial liabilities, see Consolidated Financial Statements).
Equity ratio at 58% due to capital increase and disposal of Generics.
Net equity of the Merck Group increased sharply. Both the capital increase and the after-tax gain on the disposal of the Generics business had a positive impact. Gearing (ratio of net debt and pension provisions to net equity) was 0.18 on December 31, 2007. It was 0.47 in 2006. The equity ratio was 58% compared with 47% on December 31, 2006.
