Total assets of Merck as of December 31, 2007 were €14,922 million, increasing sharply by €6,820 million over December 31, 2006. This increase is due mainly to the acquisition of Serono. The assets and liabilities of the former Serono Group are now included in the consolidated financial statements of the Merck Group. In accordance with IFRS, they must be recognized at their higher fair values within the scope of the first-time consolidation and the related purchase price allocation. The acquisition of the interests in Serono cost €10,271 million. In addition, the holding company Bertarelli Biotech S.A. (now Merck Serono S.A.) was acquired for €571 million. The holding company had liquid assets amounting to roughly the same amount. The purchase price of €10,271 million was largely attributable to intangible assets (technologies, licenses and other rights) as well as to acquired inventories and property, plant and equipment. A remaining difference has been recognized as goodwill. For more information on the Serono purchase price allocation, see Consolidated Financial Statements.

With the disposal of the Generics division, assets of this business worth about €1,615 million were divested.

A capital increase was conducted in the first quarter of 2007 to refinance the acquisition of Serono. The share capital was increased nominally by €34.5 million (including a premium of approximately €1,036 million) to a nominal amount of €168 million. E. Merck OHG increased its equity interest by a nominal amount of approximately €34 million (with a premium of approximately €1,019 million). Merck KGaA thus generated proceeds of approximately €2,055 million from the capital increase by issuing 13,278,927 new shares and from the increase of the equity interest of the general partner E. Merck OHG. Costs of the capital increase in the amount of €18 million were deducted from the equity capital. Subsequent to the capital increase, the equity interest amounts to 29.7% for the limited liability shareholders and to 70.3% for E. Merck OHG. The proceeds from the capital increase were used to repay loans.