By Alan Zibel
WASHINGTON--U. S. authorities on Wednesday approved Medtronic
Inc.'s $43 billion merger with fellow medical device maker Covidien
PLC after requiring the spinoff of a drug-coated catheter
business.
The Federal Trade Commission required Minneapolis-based
Medtronic to sell off Ireland-based Covidien's catheter business
before completing the acquisition. That $30 million sale, to
Colorado-based Spectranetics Corp., was announced earlier in
November.
The FTC said it required the sale because Medtronic and Covidien
both are developing drug-coated catheters to treat peripheral
artery disease and both have products undergoing clinical
trials.
Under a proposed consent order, a monitor will supervise the
transfer of Covidien's drug-coated catheter business to
Spectranetics. The FTC approve the deal in a 5-0 vote. Canadian
officials also approved the deal Wednesday.
The merger, combining two of the world's largest medical-supply
companies, is expected to close in early 2015, Medtronic Chief
Executive Omar Ishrak said on a Nov. 18 conference call with
analysts. The companies plan to hold a special meeting in January
to seek shareholder approval.
Write to Alan Zibel at alan.zibel@wsj.com
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