Breakingviews: Medtronic’s deal is a marriage of convenience
Monday, June 16, 2014 - 04:15
June 16 - Medtronic is looking to buy Covidien for $42.9 bln. The U.S. is keeping a keen eye on this marriage of convenience. For some reason there seems to be a rush to the altar, says Breakingviews.
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Hitched for the apology in the presence is how breaking news columnist characterized the Medtronic to video and time -- Chris Hughes. As -- -- to talk told through this what. I'm -- you're saying this is as as much of -- Tax. As it is about to be drug companies getting together making this work. Well there's crest and about the the real substance that this unit if you like -- if you look at the this images. They didn't appear to be abstinent colossal. The premium is pretty high run -- that is the scene as soon -- businesses which is strains and and and and it any deal. You're gonna get some savings but that doesn't mean -- just do any deal that the the taxi pilot cities in a lot of interest in -- circle threats and emergencies before pharma companies looking to. Relocate from those -- efficient restriction now they're -- some sort of savings. In this case but again then not absolutely colossal mess and so -- left with the impression that because there's so much control with C. Around. Are taxpayers whether whether. The possibility of tuna may one day be weeks away. This credit for apparently got a -- on now for us the personality of I USA and the other and an inventory the other the other side benefits. Possibly that may be some of -- who invented. Distribute. And captures the salute all of us -- more efficient basis but there's not enough. That it's not it's it's it's a Renaissance thing is is this is not one of those deals where -- -- -- -- present that astonishing footage is. Very very -- cultural fit and than Charles the Britons and it was not that -- believe it is very easy to see how this premiums being funded. It's a bit of apostle and say you know you left seeming. Is that that doing it kind of wore no. The current term solution racing -- -- place and getting what benefits that come from annual benefits account from the cost savings. On this remove him than maybe some of the benefits from the. -- and and given the disparate -- -- of of these businesses that it does look like that would -- any anti trust issues and it doesn't like this will get the you'll feel to it and will likely go ahead. Yeah you never know you nowadays. Thomas who has been the case of -- physically the other question about this is from what it means for. A reform -- New York city's to a for his. And that's an amicable will happen mentally thrown this year when flies to become free again. Moved to -- an agreed deal further down the track you do -- they'll say there's a sense of things within the former industry. In this football maybe taking -- This is did you anticipate his version of an oven Mitt Medtronic indeed if this goes ahead metros were all home electronics will will move to government. You know a huge undertaking. I'm we talk about the tax rate that current corporate tax rate is about 18% now. Comedian about 16%. So that a small setting on the -- or what. What why is that tax issues such a big deal for them now given. Such as mostly. If you will running companies themselves you want any saving you concatenated an eventful Sanofi toward the fiscal regimes in the peace. And it. A little -- -- -- kind of generate minimal value from your award from your combination than that and expect and that -- for -- frankly in if you war. No running that company through if you become a -- financial prism through trying get those things you can -- I'm Chris thanks very much indeed for that we're gonna warts this one time. Breaking news on Medtronic comedian. I am if you are watching US shows 1213 east and seventeen that he BST. An -- of sorts.
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