Title - A Project Post-Mortem on the Medtronic – Covidien Merger.
Subtitle – Analysis of the Medtronic – Covidien merger to determine its effects on Market, Industry and Consumers.
By – Ranoji Deshmukh. (w16623882)
Submitted for Approval to – Prof. Joe Tanega.
Subject – International Corporate Governance.
University of Westminster
4-12 Little Titchfield Street
London W1W 7BY
The question of Mergers & Acquisitions has been widely debated in the field of medical devices with the Scholars arguing about the medical device companies aiming for more stabilization after Medtronic Inc. agreed to buy Covidien Inc. in a $42.9 billion deal that has brought pressure on the medical device industry to increase production, efficiency and quality of products offered. In this proposal we shall discuss the effects of such mergers on the market competition at a global level. Also we shall analyze the changes after the merger such as new structure of the company, updated market strategy of the company and also some other factors like increase in rate of success in R & D department which plays a pivotal part in determining the future of the company. Then we shall determine whether merger of such companies within the same market have any chance of creating a monopoly in the market and what steps are taken by the concerned Competition Authority in order to put check on such monopolistic and unfair trade practices. At the end of the day the whole Commercial law works for the welfare of the consumers and so in this paper we shall try to come up with a conclusion about whether merger of companies affecting the market competition is beneficial to Consumers or not. Specifically in this project we shall look at the effects of mergers and acquisitions in order to show that acquiring market through such combinations to a certain extent is actually beneficial for the growth of market as it does not hamper any competition instead it promotes the quality of products and services as well as makes the market a Customer oriented one.
CHAPTER ONE - EFFECTS OF MERGER ON THE COMPANY
Initially Covidien plc was an Irish based healthcare products company and manufacturer of medical devices and supplies. Medtronic on the other hand was founded in 1949 in northeastern Minneapolis as a medical equipment repair shop which expanded in the 50s selling medical equipments and also customizing them. The Medtronic-Covidien Merger was based on three key philosophies namely Therapy Innovation, Globalization and Economic Value. After the successful merger, Medtronic moved up two spots on Medical Product Outsourcing’s Annual Ranking of the 30 largest medical device companies. The main aim of the merger was to form a combination that will provide patients, physicians and hospitals with a compelling portfolio of offerings that will help in improving care and surgical performance, also such transaction would provide the shareholders with immediate value and opportunity to...