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)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video