Medtronic announces takeover of Covidien

Medtronic has announced it will be purchasing fellow medical technology firm Covidien in a deal worth $42.9 billion (25.26 billion pounds).

The takeover will reinforce Medtronic's position as the world's leading medical technology and services company, with the combined organisation to have more than 87,000 employees in over 150 countries.

It will accelerate the firm's strategy in key areas such as therapy innovation, globalisation and economic value, while allowing the group to offer an even more comprehensive product portfolio than ever before.

Following the confirmation of this deal, Medtronic has committed to making $10 billion in additional US technology investments over the next ten years.

Omar Ishrak, chairman and chief executive officer of Medtronic, said: "We are excited to reach this agreement with Covidien, which further advances our mission to alleviate pain, restore health and extend life for patients around the world."

The company also approved a nine percent increase in its cash dividend this week.