Medtronic Acquisition of Covidien Receives FTC Clearance
July 28, 2016 at 4:25 p.m.
By Staff Report-
Announced in June, the $42.9 billion cash and stocks deal will see Medtronic relocated to Ireland.
The FTC's clearance follows the agreement between Minneapolis-based Medtronic and Covidien, of Dublin, Ireland, to a proposed consent order, which includes a commitment to divest certain assets related to Covidien’s drug-coated balloon catheter product, according to the announcement. A subsidiary of Covidien entered into an agreement to divest these assets to The Spectranetics Corp. and the divestiture is expected to close shortly after completion of Medtronic's acquisition of Covidien.
Medtronic and Covidien also entered into a parallel consent agreement regarding the divestiture of assets related to Covidien's drug-coated balloon catheter product with the Canadian Competition Bureau, which also announced its clearance of the transaction today.
“This regulatory clearance represents an important milestone in bringing our companies together,” said Omar Ishrak, chairman and CEO of Medtronic, in the announcement. “We continue to make good progress in planning for the integration of these two companies which will unite them under a single mission – to alleviate pain, restore health and extend life for patients with chronic disease around the world. When the transaction is complete, the combined company will allow Medtronic to reach more patients, in more ways and in more places.”
Medtronic's acquisition of Covidien is expected to close in early 2015 after receipt of certain additional regulatory clearances and approvals by both companies’ shareholders and sanction by the High Court of Ireland, the announcement states.
Medtronic, which employs about 530 people in its Warsaw division after 45 layoffs announced in May 2013, will have 87,000 employees in 150 countries under the umbrella of the combined company, Medtronic Plc. It also announced plans to commit $10 billion to technology investments in the U.S. over the next decade, including acquisitions, research and development and venture capital investments.
The companies have a combined revenue of $27 billion, including $3.7 billion from emerging markets, according to Medtronic.[[In-content Ad]]
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Announced in June, the $42.9 billion cash and stocks deal will see Medtronic relocated to Ireland.
The FTC's clearance follows the agreement between Minneapolis-based Medtronic and Covidien, of Dublin, Ireland, to a proposed consent order, which includes a commitment to divest certain assets related to Covidien’s drug-coated balloon catheter product, according to the announcement. A subsidiary of Covidien entered into an agreement to divest these assets to The Spectranetics Corp. and the divestiture is expected to close shortly after completion of Medtronic's acquisition of Covidien.
Medtronic and Covidien also entered into a parallel consent agreement regarding the divestiture of assets related to Covidien's drug-coated balloon catheter product with the Canadian Competition Bureau, which also announced its clearance of the transaction today.
“This regulatory clearance represents an important milestone in bringing our companies together,” said Omar Ishrak, chairman and CEO of Medtronic, in the announcement. “We continue to make good progress in planning for the integration of these two companies which will unite them under a single mission – to alleviate pain, restore health and extend life for patients with chronic disease around the world. When the transaction is complete, the combined company will allow Medtronic to reach more patients, in more ways and in more places.”
Medtronic's acquisition of Covidien is expected to close in early 2015 after receipt of certain additional regulatory clearances and approvals by both companies’ shareholders and sanction by the High Court of Ireland, the announcement states.
Medtronic, which employs about 530 people in its Warsaw division after 45 layoffs announced in May 2013, will have 87,000 employees in 150 countries under the umbrella of the combined company, Medtronic Plc. It also announced plans to commit $10 billion to technology investments in the U.S. over the next decade, including acquisitions, research and development and venture capital investments.
The companies have a combined revenue of $27 billion, including $3.7 billion from emerging markets, according to Medtronic.[[In-content Ad]]
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