Biotechnology company Medtronic will change the financing of its deal for foreign company Coviden in response to changes in U.S. tax laws, Bloomberg reports.
According to Bloomberg, “the change in the $42 billion deal comes after the U.S. Treasury said it would alter rules governing how such international transactions are treated for tax purposes, in an attempt to make it less profitable for U.S. companies to shift their legal addressees overseas.”
The CEO of Medtronic said the deal “was conceived and undertaken for strategic reasons and is intended to create a company that can treat more patients, in more ways and in more places around the world.”
This acquisition will move the location of Medtronic overseas, allowing “it to avoid paying taxes on the future income it earns abroad.”
Summary by MedicalGroups.com
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