Medtronic and Covidien Closed $43B Merger with Irish High Court Approval
Thursday, January 29, 2015
Source: Fierce Medical Devices
Weeks after Medtronic ($MDT) and Covidien ($COV) won shareholder approval for their $43 billion merger, the companies expect to finalize the deal today after the Irish High Court signed off on the pending acquisition.
The merger will create a business with an estimated $27 billion in revenue and a combined 85,000 employees. Medtronic will shift its legal domicile to Ireland, but the combined company will keep its executive offices in a Minneapolis, MN, suburb, The Minneapolis StarTribune reports. Dublin-based Covidien, whose operating headquarters are in Boston, may transfer some of its Boston jobs to the Minnesota region after the deal closes, increasing the number of positions there by at least 1,000. The combined company will comprise four major business groups and four geographic regions led by a new executive committee, with current chairman and CEO Omar Ishrak at the helm.
Medtronic and Covidien have long emphasized a $10 billion investment in U.S. businesses as a result of the merger. But cuts could be on the horizon as the companies look to achieve synergies, according to the StarTribune story. Medtronic execs estimate that they can weed out redundancies and pare down office expenses to save $850 million a year in the next three years.