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xchrom

(108,903 posts) Mon Jun 16, 2014, 08:17 AM Jun 2014

US-Based Medtronic Is Buying Covidien And Moving To Ireland In A $43 Billion Mega-Deal

http://www.businessinsider.com/medtronic-to-buy-covidien-in-43-billion-deal-2014-6

***snip

Tax Inversion
"After the completion of the transaction, the businesses of Medtronic and Covidien will be combined under a new entity to be called Medtronic plc," said Medtronic management in its statement. "It will have its principal executive offices in Ireland, where Covidien's current headquarters resides and where both companies have a longstanding presence."

Employing a controversial maneuver called "tax inversion," U.S.-based companies have moved their legal bases to the U.K. where they can enjoy lower tax rates.

Drugmaker Pfizer recently proposed a deal with British-based AstraZeneca to take advantage of this. However, those talks didn't get very far.

U.S. Congress has been aggressively pushing legislation to close this corporate tax loophole.

Read more: http://www.businessinsider.com/medtronic-to-buy-covidien-in-43-billion-deal-2014-6#ixzz34nuBOxtY