(Reuters) - U.S. medical device maker Medtronic Inc (MDT.N) said on Sunday it had agreed to buy Covidien Plc (COV.N) for $42.9 billion in cash and stock and move its executive base to Ireland in the latest transaction aiming for lower corporate tax rates abroad.
Bloomberg reported on June 4, 2014 that Medtronic, Inc. is joining Stryker Corporation in evaluating a purchase of Smith & Nephew plc (S&N). Medtronic management quickly threw cold water on that report at a Wall Street analyst meeting on June 5.
With the announcement that Zimmer (ZMH) plans to acquire Biomet, the competitive dynamics in the orthopedic implant market have shifted. In general, we expect the reduction in competition should help the large, top-tier firms, including Johnson & Johnson (JNJ), Zimmer, and Stryker (SYK).
Smith & Nephew SN.LN -0.47% PLC has missed out on the bouquet again. Shares in the London-listed, Dublin-based maker of replacement joints dipped around 2% in morning trading Monday, after U.S. pacemaker specialist Medtronic Inc.MDT -1.12%said it was buying Smith & Nephew’s Dublin-based rival Covidien COV +16.98%PLC for $42.9 billion.
Medtronic's (NYSE: MDT ) June 6 analyst day was by no means light fare, as the company crammed quite a bit of information into more than seven hours. While action-oriented investors are likely disappointed that management's commentary would seem to suggest a bid for Smith & Nephew (NYSE: SNN ) is not too likely, management laid out a vision of an evolving global device market where Medtronic is likely to be among the few players with the scale to really cover all of the major bases.