Medtronic receives regulatory clearance for Covidien takeover

Medtronic has announced that its planned acquisition of Covidien has been given the green light by regulatory bodies in key territories.

Last week, the US Federal Trade Commission confirmed that it had cleared the deal to proceed, with the European Commission following suit a few days later. Both of these decisions were conditional on Medtronic's commitment to divest Covidien's drug-coated balloon business.

A subsidiary of Covidien has already entered into an agreement to sell the business to Spectranetics, with the sale expected to close shortly following completion of Medtronic's acquisition of Covidien.

The Chinese Ministry of Commerce has signed off on the merger, meaning it is expected to be finalised in early 2015, following ratification from the High Court of Ireland and the shareholders of both companies.

Omar Ishrak, chairman and chief executive officer of Medtronic, said: "When the transaction is complete, the combined company will allow Medtronic to reach more patients, in more ways and in more places."

The $42.9 billion deal was agreed earlier this year and will create one of the world's largest medical technology organisations.