Breaking News - Medical device maker Medtronic to buy Covidien
U.S. medical-device manufacture Medtronic (MDT, quote) announced today it will buy it main competitor.
The move will allow Medtronic to take advantage of Ireland's low business tax rates with Covidien (COV, quote) already headquarter in Ireland.
The deal is reportedly for $42.9 billion in cash and stock.
Although Medtronic is highlighting business synergies as the main reason for deal one cannot discount the huge benefit of Ireland's tax rate of 12.5% compared to the U.S. 35% rate.
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