Medtronic to Buy Covidien in $42.9B Deal

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U.S. medical device maker Medtronic Inc said on Sunday it would buy Covidien Plc for $42.9 billion in cash and stock, moving its executive base to Ireland in the latest transaction to seek lower corporate tax rates abroad.

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Medtronic said it would keep its operational headquarters in Minneapolis and pledged $10 billion in U.S. technology investments over the next 10 years.

News of the transaction first emerged on Saturday. The combined company would prove a close competitor to the medical device business of Johnson & Johnson Co. 

(Reporting by Michele Gershberg; Editing by Dan Grebler)