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...Medtronic is shedding assets following the completion of its almost $50bn acquisition of Ireland’s Covidien in 2015....
...Merger and acquisition activity has also buoyed valuations, with $10bn-plus deals announced between Allergan and Actavis, Covidien and Medtronic, Hospira and Pfizer as well as CareFusion and Becton Dickinson...
...Mr Ishrak says the takeover of Covidien has much to offer aside from financial engineering....
...Bankers say that, after huge deals such as Acatvis’s $66bn acquisition of Allergan and the $42.9bn takeover of Medtronic by Covidien in 2014, activity this year is more concentrated around mid-sized deals...
...tap capital markets at the start of the month on Monday were the likes of Medtronic, with the expected sale of at least $10bn in bonds as the medical device maker seeks to finance its $43bn purchase of Covidien...
...The group had planned to use overseas cash belonging to itself and Covidien to help pay for the deal....
...Medtronic, a medical device maker, has pressed ahead with its $42.9bn acquisition of rival Covidien in a deal that will give it a tax-efficient Irish address....
...As of Friday’s close, Covidien had a market capitalisation of $32.5bn. It became a publicly traded company in 2007 after it was spun off from Tyco International....
...The above is a clause from the Medtronic/Covidien merger agreement of course – although it allows Medtronic to walk away from the deal if US tax law prevents the company ‘inverting’ to Covidien’s Irish domicile...
...Medtronic, which has struck a $42.9bn deal to buy Ireland-based Covidien, has $13bn of cash outside the US....
...José Almeida, Covidien’s chief executive, told the FT he would step down once the deal is completed. Medtronic was advised by Perella Weinberg while Covidien was advised by Goldman Sachs....
...But Medtronic’s tax rate is only one or two percentage points higher than Covidien’s. The difference might be worth $1bn, at a stretch....
...Shares in Medtronic, the medical device maker, fell 1.1 per cent to $60.03 after it agreed to buy Dublin-based Covidien Plc for $42.9bn. Shares in Covidien were up 20 per cent to $86.75....
...Recent deals among medical device makers include Zimmer/Biomet and Medtronic/Covidien (the latter is also a so-called tax inversion). And so tax-driven healthcare deals have not emerged from a vacuum....
...Medtronic’s $42bn acquisition of Covidien remains the largest of the tax inversions completed in 2014....
...If completed, its acquisition of Covidien, a maker of devices used in surgical procedures, would create a close rival to Johnson & Johnson, the market leader....
...In inversion deals in the past month, Medtronic announced the $42.9bn acquisition of Dublin-based Covidien and AbbVie agreed to take over the UK’s Shire for $54bn....
...(Bloomberg) Medtronic snaps up Covidien for $42.9bn: Medtronic, the medical device and equipment maker, has agreed to acquire Irish rival Covidien’s equity in a $42.9bn cash and stock deal that will allow...
...Collapse of the Salix acquisition will raise fresh questions over the fate of other pending inversions, such as the $42.9bn acquisition of Dublin-based Covidien by Medtronic, the US medical devices company...
...People close to those deals said they were confident they would go ahead – but declines in the share prices of Shire and Covidien this week reflected investor fears....
...Covidien of Ireland, which is being bought by Medtronic, shed 4.26 per cent in early New York trading, while AstraZeneca, the UK pharmaceuticals group that was subject to an abortive offer from Pfizer, closed...
...announced since the start of 2013, according to Dealogic, including Burger King’s $11.4bn acquisition of the Canadian coffee shop chain Tim Hortons last month, and the $42.9bn takeover of Dublin-based Covidien...
...this year, with many of the largest transactions initiated by US companies seeking to deploy trapped offshore cash: notably Pfizer’s failed $116bn bid for AstraZeneca, the $43bn purchase of Dublin-based Covidien...
...Others to have struck similar deals this year include Medtronic, the US medical device maker, which agreed last month to buy Dublin-based Covidien for $42.9bn....
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