Medtronic’s Covidien Takeover Finally a Done Deal

After much fanfare and media coverage, debate of corporate inversions and government action, Medtronic Inc. officially became Medtronic plc on Jan. 26 with the completion of the acquisition of Dublin, Ireland-based Covidien plc, following the approval of an Irish high court. Shares of Medtronic plc are expected to begin trading on the New York Stock Exchange (NYSE) under the symbol “MDT” on Tuesday, Jan. 27.

The deal originally was announced in June last year.

“The culmination of this acquisition marks a significant milestone in our industry, creating a company uniquely positioned to alleviate pain, restore health and extend life for more patients around the world. We can now bring together the extensive and innovative capabilities of both Medtronic and Covidienwith an underlying objective to solve healthcare`s biggest challenge—expanding access and improving clinical outcomes, while lowering costs,” said Omar Ishrak, chairman and CEO of Medtronic. “This is an exciting day for our employees as we officially join forces to pursue our shared commitment to addressing universal healthcare needs and accelerating Medtronic`s three fundamental strategies of therapy innovation, globalization and economic value. We know that our combined businesses can have a real and meaningful impact on people`s lives—helping to treat more people, in more ways and in more places around the world.”

Covidien shares and Medtronic Inc. shares ceased trading on the NYSE at the close of business on Jan. 26. The cash-and-stock transaction is valued at approximately $49.9 billion, based on Medtronic`s closing stock price of $75.59 per share on Jan. 26.Under the terms of the transaction, each ordinary share of Covidien outstanding as of the closing has been converted into the right to receive $35.19 in cash and 0.956 of an ordinary share of Medtronic plc. Each share of Medtronic Inc. common stock outstanding as of the closing has been converted into the right to receive one ordinary share of Medtronic plc.

The closing of the transaction does not affect the results of Medtronic Inc.`s fiscal third quarter, which ended on Jan. 23.

Medtronic plc, which had been based in Minneapolis, Minn., now will have its base in Ireland, though the company`s operational headquarters will continue to be based in Minneapolis.

Covidien’s operation headquarters had been in Mansfield, Mass.