Medtronic Acquisition of Covidien Receives U.S. FTC Clearance

WASHINGTON—U. S. authorities on Wednesday approved Medtronic Inc. ’s $43 billion merger with fellow medical device maker Covidien PLC after requiring the spinoff of a drug-coated catheter business.

The Federal Trade Commission required Minneapolis-based Medtronic to sell off Ireland-based Covidien’s catheter business before completing the acquisition. That $30 million sale, to Colorado-based Spectranetics Corp. , was announced earlier in November.

The FTC said it required the sale because Medtronic and Covidien both are developing drug-coated catheters to treat peripheral artery disease and both have products undergoing clinical trials.

Under a proposed consent order, a monitor will supervise the transfer of Covidien’s drug-coated catheter business to Spectranetics. The FTC approve the deal in a 5-0 vote. Canadian officials also approved the deal Wednesday.

The merger, combining two of the world’s largest medical-supply companies, is expected to close in early 2015, Medtronic Chief Executive Omar Ishrak said on a Nov. 18 conference call with analysts. The companies plan to hold a special meeting in January to seek shareholder approval.



Josh Sandberg

Josh Sandberg is the President of Ortho Sales Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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