Medtronic to buy Covidien for $42.9 billion, rebase in Ireland

(Reuters) - U.S. medical device maker Medtronic Inc said on Sunday it had agreed to buy Covidien Plc for $42.9 billion in cash and stock and move its executive base to Ireland in the latest transaction aiming for lower corporate tax rates abroad. The deal will allow Medtronic to reduce its overall global tax burden. The Minneapolis-based company said the move was not driven by tax considerations, pointing instead to medical technology synergies with Covidien. The merger of Medtronic, the world's largest stand-alone medical device maker, and Covidien, a maker of devices used in surgery, will create a close competitor to the medical device business of Johnson & Johnson Co. The deal values each Covidien share at $93.22, paid for by $35.19 in cash and 0.956 Medtronic shares.

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