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US: FTC needs more info on $43B healthcare supply takeover

By  |  August 10, 2014

The Federal Trade Commission has reportedly requested more information regarding the $42.9 billion takeover of healthcare supplies company Covidien.

Market leader Medtronic’s plans to acquire Covidien could now be delayed, say reports, after Medtronic revealed in a filing that the FTC needs more information regarding the transaction. The second request for information now extends the regulatory waiting period until 30 days after the companies have complied with the FTC’s request.

Medtronic and Covidien announced their merger plans last June and said at the time that they expect the deal to close by the end of the year, or possibly by early next year.

Despite the FTC’s second request for information, the companies said Friday that they are not changing their anticipated timeline for the deal.

But according to reports, the FTC could be concerned that the transaction involves a plan for Medtronic to move its headquarters to Ireland to benefit from lower taxes; Covidien is based in Ireland for similar tax purposes.

Full content: Boston Globe

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