Details of the mega-merger: Covidien makes the 1st move, Almeida prepares to step down

August 6, 2014 by Arezu Sarvestani

Covidien discloses details of the pending $43 billion acquisition by Medtronic, including who approached who and what Covidien chief Jose Almeida will do after handing the reins to Medtronic.

Medtronic and Covidien open up about $43B mega-merger

Covidien (NYSE:COV) updated its employee FAQ this week, providing additional information about the $43 billion acquisition by Medtronic (NYSE:MDT).

Here are a few interesting tidbits and updates from the mega-merger:

  • The deal is nearly 5 months in the making. Covidien first approached Medtronic in March, hoping that the larger company would be the best fit, the most interested and the highest-paying of its options.

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"The Covidien board of directors has, on an ongoing basis, considered the long-term strategy of Covidien and strategic opportunities that might be available to Covidien to enhance shareholder value, including additional investments in new growth opportunities, potential acquisitions and the possible sale or merger of Covidien," the company said. "Following consideration by the Covidien board of various potential strategic opportunities, on March 20, 2014, the Covidien board authorized Covidien management to approach Medtronic to discuss a potential combination of the two companies."