US medical device maker Medtronic has agreed to buy Dublin-based Covidien for $42.9 billion. The company also said it would move its executive headquarters to Ireland.
Medtronic is the world’s largest stand-alone medical device maker with a market value of over $60 billion, while Covidien makes devices used in a range of surgical procedures. The expansion should allow it to better compete for business from hospitals, particularly in the US where healthcare reform efforts and shrinking government reimbursement for medical procedures has kept pressure on device pricing.
Medtronic’s deal with Covidien is expected to close in the fourth quarter of 2014 or early 2015, Medtronic said.