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.
