China/South Korea: Medtronic secures crucial Covidien purchase approvals

US-based medical equipment maker Medtronic has received clearance from antitrust authorities in China and South Korea to acquire Ireland-based Covidien for nearly $43 billion, according to reports.

Medtronic expects to close the deal in early 2015 but is already making headlines from the transaction; according to reports, Metronic announced only days ago that it sold $17 billion in commercial bonds to finance its acquisition – the largest sale of debt by a corporation in 2014.

China’s Ministry of Commerce and South Korea’s Fair Trade Commission are the latest of 12 competition authorities across the globe to approve of the deal. Regulators in the US and EU have similarly cleared the takeover.

While antitrust watchdogs have presented little resistance to the deal, Medtronic’s acquisition of Covidien has raised concerns due to Medtronic’s plans to relocate its headquarters to Ireland, allowing the company to benefit from lower taxes. Such inversion mergers have become the focus of scrutiny in several jurisdictions, including in the US and EU.

Full content: Daily Telegraph

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