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| Clermont Meridian Trading Outlines Medtronic Completes Covidien Acquisition for $50B |
Following the Irish Court's judgment in favor of the acquisition deal, medical technology giant Medtronic, Inc. has finally finalized the $42.9 billion merger of its Irish counterpart Covidien plc. The latest acquisition was outlined by experts from the financial services firm Clermont Meridian Trading.
“Medtronic, Inc. and Covidien Plc will now become wholly-owned subsidiaries of the new combined holding company, Medtronic Plc, with its major executive headquarters in Ireland, according to the terms of the agreement. The combined company's operational headquarters, on the other hand, will stay in Minnesota,” explained Andrew Wakefield, Head of Corporate Derivatives at Clermont Meridian Trading.
Based on Medtronic's closing stock price of $75.59 per share on January 26, 2015, the cash-and-stock transaction of this agreement is valued at roughly $49.9 billion. According to the terms of the deal, each ordinary outstanding Covidien shareholder, as of the closing date, will receive $35.19 in cash and 0.956 of a Medtronic plc ordinary share.
Furthermore, as of the closing date, each outstanding common stock shareholder of Medtronic, Inc. shall receive one ordinary share of Medtronic plc under the terms of this agreement.
The transaction's completion will not impact Medtronic, Inc.'s fiscal third-quarter results, which ended on Friday, January 23, 2015. Medtronic plc's stock is expected to begin trading on the New York Stock Exchange (NYSE) on Tuesday, January 27, 2015, under the ticker "MDT."
Medtronic, Inc.'s management has recognized this historic merger, which is likely one of the largest in the MedTech industry, as a watershed moment, resulting in the formation of a one-of-a-kind firm that combines both Medtronic's and Covidien's expansive and innovative capabilities.
With over 85,000 workers in over 160 countries and annual revenues of $27.4 billion in 2014, the merged firm will accelerate Medtronic's three critical goals: therapeutic innovation, globalization, and economic value.
"With the completion of this transaction, a new medical device behemoth will emerge, commanding a significant market share in both the United States and Europe. The combined business will also be able to minimize its corporate tax liability by repatriating capital held in international markets,” concluded Wakefield.
Financial experts at Clermont Meridian Trading predict the newly created Medtronic Plc will gain a higher market share and generate more profits in the short term due to the combined strength of the two MedTech behemoths.