Medtronic announces its plan to buy Covidien

U.S. medical giant Medtronic has announced its plan to buy Ireland’s Covidien in a deal worth $42 billion in cash and stock, BBC News reported on June 16.

According to the report, part of the acquisition terms relocate Medtronic’s executive offices from the U.S. to Ireland, which has a relatively low corporate tax rate of 12.5 percent. Meanwhile, Medtronic plans to maintain its operational facilities in Minneapolis, which currently employs more than 8,000 American workers.

Both companies hope for the annual savings from this transaction to total at least $850 million by the end of the 2018 financial year. Regulatory authorizations from China, the European Union, and the U.S., as well as approval from both of the companies’ shareholders, are still needed before the acquisition is finalized.

Business transactions like this can be beneficial for your business, especially when guided by a knowledgeable business lawyer who understands how the intricate legal business processes in Cedar Rapids work. Speak with an attorney at Arenson Law Group, PC, if you need legal advice and representation when facing business law transactions. Call us today at (319) 363-8199