The U.S. Federal Trade Commission (FTC) has announced its regulatory clearance of Medtronic’s $43 billion acquisition of Irish medical-supply company Covidien on November 26, but under certain conditions, Nasdaq reported.
Because the FTC believes the purchase will be anticompetitive as both companies are developing drug-coated catheters for U.S. consumers, the agency required Medtronic to sell Covidien’s catheter business unit to Colorado-based Spectranetics Corp. To resolve the issue, Medtronic has already announced the $30 million sale earlier this month.
The buyout, which would combine two of the biggest medical supply makers in the world, is expected to conclude in early 2015.
Acquisitions such as this would require meeting all the regulatory and legal prerequisites before being finalized. As such, it is important to seek the help of a qualified and experienced acquisitions attorney who can help you breeze through its necessary legal steps. Speak with a Cedar Rapids business lawyer at Arenson Law Group, PC, by calling (319) 363-8199 today.