MEDTRONIC
US medical technology giant to acquire Irish rival Covidien for USD 42.9 bn / Setting the stage for more mergers in the medical devices field?
In a massive USD 42.9 bn deal, Minneapolis / US-based medical technology specialist Medtronic (www.medtronic.com) has signed an agreement to acquire healthcare products company Covidien (Dublin / Ireland; www.covidien.com). Medtronic is reported to be the world’s second-biggest maker of medical devices after Johnson & Johnson, specialised in implantable heart devices and equipment used in spinal surgery procedures.
Global media speculate that the reason behind the takeover is the US group’s intention to lower its tax rates. Once the all-clear is given, Medtronic will move its corporate headquarters to Dublin. In 2013, the company reported pre-tax operating earnings of USD 4.25 bn on sales of USD 16.6 bn. The combined company will have a workforce of 87,000.
The Irish company, which specialises in the manufacture of medical devices and medical supplies, recorded sales of USD 10.2 bn in 2013. Experts expect the deal to raise the pressure on other medical device manufacturers to merge their businesses as well.
Global media speculate that the reason behind the takeover is the US group’s intention to lower its tax rates. Once the all-clear is given, Medtronic will move its corporate headquarters to Dublin. In 2013, the company reported pre-tax operating earnings of USD 4.25 bn on sales of USD 16.6 bn. The combined company will have a workforce of 87,000.
The Irish company, which specialises in the manufacture of medical devices and medical supplies, recorded sales of USD 10.2 bn in 2013. Experts expect the deal to raise the pressure on other medical device manufacturers to merge their businesses as well.
20.06.2014 Plasteurope.com [228521-0]
Published on 20.06.2014
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