FTC Clears Medtronic-Covidien Deal

(RTTNews) - Medtronic, Inc. (MDT) and Covidien plc (COV) said Wednesday that the U.S. Federal Trade Commission has cleared Medtronic's proposed $43 billion acquisition of Covidien.

The FTC clearance follows Medtronic's and Covidien's agreement to a proposed consent order, which includes a commitment to divest certain assets related to Covidien's drug-coated balloon catheter product. A subsidiary of Covidien has already entered into an agreement to divest those assets to The Spectranetics Corp. and the divestiture is expected to close shortly following completion of Medtronic's acquisition of Covidien.

Medtronic and Covidien also entered into a parallel consent agreement regarding the divestiture of assets related to Covidien's drug-coated balloon catheter product with the Canadian Competition Bureau, which also announced its clearance of the deal Wednesday.

Medtronic's acquisition of Covidien is expected to close in early 2015 after receipt of certain additional regulatory clearances and approvals by both companies' shareholders and sanction by the High Court of Ireland.