U.S. medical device maker Medtronic Inc said it agreed to purchase Dublin-based Covidien Plc for $42.9 billion and shift its executive headquarters to Ireland in the latest move by U.S. firms to harvest lower corporate tax rates abroad.While the cash and stock deal will allow Medtronic to reduce its overall global tax burden, the Minneapolis-based company said on Sunday it was driven by a complementary strategy with Covidien on medical technology, rather than tax considerations."The real purpose of this, in the end, is strategic, both in the intermediate term and the long term," Medtronic Chief Executive Omar Ishrak said in an interview after the deal was announced. "It is good for the U.S. in that we will make more investment in U.S. technologies, which previously we could not."Medtronic's corporate tax rate, now at around 18 percent, won't change much, Ishrak 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.
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.
Source
