Medtronic's Acquisition of Covidien Approved by Regulators

November 28, 2014—Medtronic Inc.'s proposed acquisition of Covidien has received conditional approval in the United States, the European Union, and Canada. 

The companies announced that the clearance from the US Federal Trade Commission (FTC) follows Medtronic’s and Covidien’s agreement to a proposed consent order, which includes a commitment to divest certain assets related to Covidien’s drug-coated balloon (DCB) catheter product. The divestiture of the DCB product was also a condition of the clearances from the European Commission and the Canadian Competition Bureau.

As announced on November 2, Spectranetics Corporation will acquire Covidien’s Stellarex DCB platform for $30 million. That transaction is expected to close shortly after completion of Medtronic’s acquisition of Covidien.

The companies advised that Medtronic’s acquisition of Covidien is expected to close in early 2015 after receipt of certain additional regulatory clearances and approvals by both companies’ shareholders and sanction by the High Court of Ireland.

The proposed acquisition was announced in June 2014. As stated in that announcement, the businesses of Medtronic and Covidien will be combined under a new entity to be called Medtronic plc, which will have its principal executive offices in Ireland and its operational headquarters in Minneapolis, Minnesota. Covidien’s headquarters are currently in Ireland, where both companies have a longstanding presence.