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EU: Medtronic willing to compromise to rival Johnson & Johnson

 |  November 12, 2014

As US medical device maker Medtronic looks to gain a stronger footing against the market’s top competitor Johnson & Johnson, reports say Medtronic has offered concessions to EU authorities to secure approval for its buyout plans.

Medtronic is seeking to acquire Irish rival Covidien for $43 billion. According to reports, that takeover would place Medtronic at a nearly even level with Johnson & Johnson and lessen its tax burden.

The European Commission said this week that Medtronic has submitted concessions for the deal, but declined to say what those concessions are. The watchdog said it will rule on the merger by November 28.

Earlier reports said Covidien was willing to sell certain assets to close the deal.

Medtronic is looking to increase its competitive edge and has denied any claims that the merger is an inversion deal aimed at lowering its tax rates, though the merger would accomplish just that.

Full content: Reuters

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