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EU: Medtronic requests EC approval for $43B purchase

 |  October 13, 2014

US-based medical equipment maker Medtronic has reportedly formally submitted its request to the European Commission to acquire Irish peer Covidien in a $3 billion acquisition.

Reports say the takeover will push Medtronic onto a more level playing field with global industry leader Johnson & Johnson. The deal will also lower Medtronic’s tax burden by relocating its tax domicile overseas.

Such mergers, known as inversion deals, have come under scrutiny by both US and EU authorities, however. But Medtronic said that the takeover is not an inversion deal and, instead, aims to refocus its medical technology strategy, according to reports.

The Commission set a deadline to decide on the deal for November 14, reports say.

Full content: Reuters

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