Analysis of information sources in references of the Wikipedia article "Medtronic" in English language version.
Bloomberg Special Reports: Corporate Tax Inversions
Omar Ishrak, the Bangladesh-born chairman and chief executive of Medtronic, says that buying Covidien was as much about corporate strategy as a tax: "We just followed the rules and the deal was done based on strategic merits. So that's why it's more resilient to some of the obvious things that the Treasury did"
Medtronic is the top medical device company in the world for 2018 with an impressive annual revenue nearly $30 billion in 2017. The company experienced a 3% increase in revenue compared with 2016 figures and they reported 'balanced, diversified growth across all groups and regions'. Revenue increases are also due in part to the consolidation of its acquisition of Covidien.
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.
Since its "inversion," the company has been awarded more than $40 million in federal contracts and its executives still work at its Fridley campus.
After a merger, if the shareholders of the former U.S. company own at least 80% of the combined firm, the government treats the new combined business is subject to U.S. taxes, basically negating the inversion, even if its address is abroad. If they own at least 60%, some restrictions apply but the company is still considered foreign. That's led companies to keep their inversions below 60%—and prompted the government to propose rules halting various techniques for doing so.
