U.S. medical device maker Medtronic Inc said on Sunday it had agreed to purchase Covidien Plc for $42.9 billion in cash and stock and move its executive base to Ireland in the latest transaction aiming for lower corporate tax rates abroad.The merger of Medtronic, the world's largest stand-alone medical device maker, and Covidien, a maker of devices used in surgery, will create a close competitor to the medical device business of Johnson & Johnson Co.The deal values each Covidien share at $93.22, paid for by $35.19 in cash and 0.956 Medtronic shares. This share consideration represents a 29 percent premium to Covidien's closing stock price on Friday, Medtronic said.The combination, which will leave Covidien shareholders owning about 30 percent of the combined company, is expected to result in at least $850 million of annual pre-tax cost synergies by the end of fiscal year 2018, Medtronic said.
Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Shares of COV fell by 0.03% or $-0.02/share to $72.02. In the past year, the shares have traded as low as $53.05 and as high as $73.80. On average, 1943330 shares of COV exchange hands on a given day and today's volume is recorded at 829914.
Johnson & Johnson is a holding company. The Company is engaged in the research and development, manufacture and sale of a broad range of products in the health care field. Shares of JNJ remained unchanged at $102.53. In the past year, the shares have traded as low as $82.12 and as high as $104.15. On average, 7460320 shares of JNJ exchange hands on a given day and today's volume is recorded at 4302188.
Medtronic, Inc. (Medtronic) is engaged in medical technology - alleviating pain, restoring health, and extending life for millions of people worldwide. Shares of MDT fell by 0.15% or $-0.09/share to $60.70. In the past year, the shares have traded as low as $51.06 and as high as $64.33. On average, 4298760 shares of MDT exchange hands on a given day and today's volume is recorded at 2085267.
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