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Fridley-based Medtronic has agreed to buy Irish health care products company Covidien for $42.9 billion in cash and stock.


The company announced the deal Sunday night.


The deal will move Medtronic's principal executive offices to Ireland, where Covidien is based.
Medtronic's operational headquarters and CEO will remain in Minnesota, where the company currently employs more than 8,000 people.


Gov. Mark Dayton reacted to the announcement in a statement. "My primary concerns were this merger's effects on the Minnesotans currently working at Medtronic, and its implications for the company's continued growth here," he said. "I am greatly reassured by Medtronic's assurances that their commitments to their Minnesota headquarters and their Minnesota employees will continue to grow in the years ahead."


A statement from the companies indicates there will be $850 million in cost cuts from reducing duplicate corporate functions. 


Analysts have speculated such a move would be designed to reduce Medtronic's corporate tax burden.


Ireland currently has a corporate tax rate of 12.5 percent, while the U.S. corporate tax rate is around 35 percent.

Medtronic agrees to merger and will move to Ireland

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

Business and Economic News

Peter Cox

Author

Fridley-based Medtronic has agreed to buy Irish health care products company Covidien for $42.9 billion in cash and stock. The deal will move Medtronic's principal executive offices to Ireland, where Covidien is based.

Medtronic agrees to acquire Irish health care company for nearly $43 billion

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