Irish Eyes May Smile On Medtronic-Covidien Tax Rates, But There Is More To It, Execs Say-thegraysheet: Medtrode Inc. and Covidien PLC executives argue that their mammoth $42.9 billion merger is about much more than just the tax benefits. The firms fit together like a glove, they say. The tax-inversion element of the acquisition – where Medtronic will move its legal domicile to Ireland, where Covidien is headquartered, to take of advantage of lower tax rates – is attracting most of the deal’s publicity so far, with good reason: Medtronic has upwards of $14 billion in cash on hand, but much of it is overseas, shielded it from a big U.S. tax penalty.
