Medtronic-Covidien deal closes; largest merger in medtech historyMedtronic-Covidien deal closes; largest merger in medtech history

When it was first announced, the proposed acquisition stirred a vigorous debate in Washington and elsewhere about the morality of multinationals leaving the United States to take advantage of tax breaks. Sensitive to this issue, Medtronic CEO Omar Ishrak reiterated his plans to invest $10 billion in medtech R&D over the next decade, much of it in the United States.

Commenting on the acquisition, Ishrak said in a prepared statement, "The culmination of this acquisition marks a significant milestone in our industry, creating a company uniquely positioned to alleviate pain, restore health and extend life for more patients around the world. We can now bring together the extensive and innovative capabilities of both Medtronic and Covidien with an underlying objective to solve healthcare's biggest challenge - expanding access and improving clinical outcomes, while lowering costs."

The combined company, with a market capitalisation of about $125 billion, will be one of the biggest players in the fragmented "medtech" sector, manufacturing everything from standard pacemakers to precision tools and imaging devices for neurosurgeons, reports the Financial Times.