Medtronic, Covidien in advanced talks to combine -WSJ
June 14 (Reuters) - Medical-device maker Medtronic Inc and rival Covidien PLC are in advanced talks to combine in a deal that could be worth more than $40 billion, the Wall Street Journal reported on Saturday, citing people familiar with the matter.
The Journal said the deal, which could be announced on Monday, would be structured as a so-called tax inversion, according to one of the people.
In such deals, acquirers buy companies based in countries with lower corporate tax rates than their own as a means of lowering their overall rate. Covidien is based in Ireland, which is known for having a relatively low tax rate.
Minneapolis-based Medtronic, which makes cardiovascular and orthopedic devices, has a market value of about $61 billion. Covidien, which makes devices used in surgery, is valued at about $32 billion.
Pfizer Inc recently mounted an abortive takeover bid for British-based AstraZeneca in what would have been a roughly $120 billion deal aimed in part at lowering the U.S. drug firm's corporate tax rate.
(Reporting by Eric Beech, editing by William Hardy)
- Moscow fights back after sanctions; battle rages near Ukraine crash site |
- U.S. man sues soccer star Cristiano Ronaldo over CR7 trademark
- Gaza toll soars as Israel 'days' from completing tunnel hunt
- Obama to Republicans: ‘Stop just hatin’ all the time’
- Argentina braces for market reaction to second default in 12 years