The US Federal Trade Commission (FTC) has approved global medical technology firm Medtronic’s proposed acquisition of Irish medical products manufacturer Covidien.

As part of the deal, Medtronic has agreed to divest the drug-coated balloon catheter business of Covidien, in order to settle FTC concerns over the anticompetitive potential of the $42.9bn acquisition of Covidien.

The FTC’s proposed settlement will see Medtronic sell the drug-coated balloon catheter business to US-based medical device firm Spectranetics.

A subsidiary of Covidien entered into an agreement to divest these assets to Spectranetics and the divestiture is scheduled to close shortly after completion of Medtronic’s acquisition of Covidien in early 2015.

Medtronic chairman and CEO Omar Ishrak said: "This regulatory clearance represents an important milestone in bringing our companies together.

"This regulatory clearance represents an important milestone in bringing our companies together."

"We continue to make good progress in planning for the integration of these two companies, which will unite them under a single mission; to alleviate pain, restore health and extend life for patients with chronic disease around the world.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"When the transaction is complete, the combined company will allow Medtronic to reach more patients, in more ways and in more places."

The two firms have also entered into a parallel consent agreement regarding the divestiture of assets related to Covidien’s drug-coated balloon catheter product with the Canadian Competition Bureau, which also announced its clearance of the transaction.

As part of the proposed consent order, an interim monitor will supervise Medtronic and Covidien to oversee the transfer of rights and assets related to Covidien’s drug-coated balloon catheter business to Spectranetics.

Currently, Spectranetics manufactures and markets a range of devices to treat peripheral and coronary arterial disease.