US-based Medtronic has reportedly inked a deal with Ireland-based Covidien, a move that will lead to Medtronic to move its medical device manufacturing operations overseas.
Reports say Medtronic will acquire Covidien for $42.9 billion and move its executive base to Ireland. It’s part of a strategy by the US firm to reduce its tax burden, which will allow the company to allocate more funds for US investment, the company said.
The merger will also establish a greater competitor to current medical device behemoth Johnson & Johnson. The acquisition of Covidien will expand Medtronic’s medical device portfolio into weight-loss surgery and other services, according to reports.
The deal remains subject to regulatory approval.
In related news, the European Commission recently announced plans to investigate three member states, including Ireland, and their tax relationships with major companies including Starbucks and Apple.
Full content: Irish Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.