The US Federal Trade Commission (FTC) and the European Commission have given clearance of Medtronic’s proposed acquisition of Covidien.
The FTC’s and European Commission’s clearances follow 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 entered into an agreement to divest these assets to Spectranetics 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 announced its clearance of the deal at the same time as the FTA.
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.