Medtronic to buy Covidien for $42.9 billion, rebase in Ireland

[riky]

Medtronic to buy Covidien for $42.9 billion, rebase in Ireland

<p><a href="http://news.yahoo.com/medtronic-buy-covidien-42-9-bln-rebase-ireland-010737709--sector.html"><img src="http://l3.yimg.com/bt/api/res/1.2/0uVgj_0CYlD.qZ2u3FppCA--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTg2O3E9NzU7dz0xMzA-/http://media.zenfs.com/en_us/News/Reuters/2014-06-16T010737Z_1006950001_LYNXMPEA5F01D_RTROPTP_2_CBUSINESS-US-COVIDIEN-MEDTRONIC-INC.JPG" width="130" height="86" alt="Medtronic Chairman and CEO Ishrak speaks at the Reuters Health Summit in New York" align="left" title="Medtronic Chairman and CEO Ishrak speaks at the Reuters Health Summit in New York" border="0" /></a>U.S. medical device maker Medtronic Inc said on Sunday it had agreed to buy Covidien Plc for $42.9 billion in cash and stock and move its executive base to Ireland in the latest transaction aiming for lower corporate tax rates abroad. While the deal will allow Medtronic to reduce its overall global tax burden, the Minneapolis-based company said it was driven by a complementary strategy with Covidien on medical technology rather than tax considerations &quot;The real purpose of this, in the end, is strategic, both in the intermediate term and the long term,&quot; Medtronic Chief Executive Omar Ishrak said in an interview after the deal was announced. &quot;It is good for the U.S. in that we will make more investment in U.S. technologies, which previously we could not.&quot; Medtronic's corporate tax rate, now at around 18 percent, won't change much, Ishrak said.</p><br clear="all"/>

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