FTC approves Medtronic acquisition of Covidien after agreement to sell catheter business unit

MarketsAssociated Press

The U.S. Federal Trade Commission said Wednesday that it approved Medtronic's $42.9 billion acquisition of Covidien after the medical device maker agreed to sell a business that makes a type of catheter used in veins.

Medtronic said it will sell Covidien's drug-coated balloon catheter business to Colorado Springs, Colorado-based The Spectranetics Corp. shortly after its acquisition of Covidien closes. Medtronic expects the deal to close early next year. It still needs to be cleared by regulators and authorization from Ireland, where Covidien is based. Both companies' shareholders also need to approve the acquisition.

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Medtronic first announced the deal to buy Covidien in June.

Shares of Minneapolis-based Medtronic shares rose 69 cents to close at $73.48 Wednesday. U.S.-traded shares of Covidien rose $1.22 to close at $100.54. Spectranetics shares rose 29 cents to close at $32.29.