Medtronic-Covidien Merger Approved By Irish High Court
Medtronic Inc. got the green light from Ireland’s High Court to finish its $48 billion acquisition of Dublin-based Covidien PLC less than a month after shareholders approved the deal.
When the markets close Monday, Medtronic will cease to be a Minnesota-based company, officially renamed Medtronic PLC and headquartered in low-tax Ireland. Operational headquarters will remain in Fridley.
The new company combines Medtronic’s prowess with heart devices and other specialized medical tools along with Covidien’s surgical gear and general healthcare supplies.
The acquisition, dubbed an “inversion,” has been controversial since it was announced last year, as it will help the company avoid taxes from overseas profits when it reenters the United States.
“They’ll be able to spend more and they won’t necessarily have some of the tax consequences of trying to bring money back or repatriate money back into the U.S.,” Jeff Windau, an industry analyst at Edward Jones, told Minnesota Public Radio.
Some of Covidien’s jobs at its operational headquarters in Boston are expected to move to Minnesota, according to the Star Tribune. The company has promised to increase the number of jobs in the state by at least 1,000 as part of the merger.