In particular, shareholders maintaining 95.66% of Medtronic's shares as well as those representing roughly 75.18% of its outstanding shares voted in favor of the acquisition, as of the record date; based on preliminary vote evaluation.
In a separate development, on the same day, Covidien reported in a special court ordered investors meeting, that 99.01% of its shareholders have also given the final go-ahead for this deal.
As of now, the deal is expected to close in the last week of January or early Feb 2015, subject to approval by the Ireland High Court. Naturally, Medtronic remains highly enthusiastic about the completion of the transaction.
In Jun 2014, Medtronic had announced its plans to buy Covidien - the company's Irish competitor in surgical technologies and healthcare major.
This deal is expected to result in at least $850 million of annual pre-tax cost synergies by the end of fiscal 2018. The combined company - Medtronic plc - would generate about $27 billion in total revenue, including $3.7 billion from emerging markets.
The primary rationale behind this buyout was Medtronic's intention to offset the impact of a high U.S. corporate tax rate by shifting its tax base overseas.
In Sep 2014, the U.S. Treasury Department announced its first steps to curb tax benefits being availed through corporate inversions, thereby forcing many Pharma and Medtech majors to cancel their offshore deals. However, Medtronic showed reasonable confidence in deciding to proceed with the Covidien takeover, indicating expectations of high growth synergy from this impending deal.
In late Nov 2014, the U.S. Federal Trade Commission (FTC) gave its clearance for Medtronic's proposed acquisition of Covidien. The European Commission followed suit soon after. However, both the approvals demanded Medtronic's commitment to divest certain assets related to Covidien's drug-coated balloon (DCB) catheter.
Thereafter, in early December, Medtronic received the nod from the Chinese Ministry of Commerce and the South Korean Fair Trade Commission, for this deal.
This latest shareholder approval comes as the final stamp on the much awaited Medtronic-Covidien deal, the completion of which will give the Medtech space the world's leader in medical technology and services, with a presence spanning over 150 countries.
Currently, both Medtronic and Covidien carry a Zacks Rank #3 (Hold). Better-ranked medical product stocks include ICU Medical, Inc. ( ICUI ), and INSYS Therapeutics, Inc. ( INSY ). Both these stocks hold a Zacks Rank #1 (Strong Buy).