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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.

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"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.