By Carl O’Donnell – Wed Apr 5, 2017
U.S. drug distributor Cardinal Health Inc (CAH.N) is nearing a deal to acquire medical device maker Medtronic Plc’s (MDT.N) medical supplies business for close to $6 billion, people familiar with the matter said on Wednesday.
The sale would streamline Medtronic’s portfolio after its $42.9 billion acquisition of Covidien Plc in 2014. In that deal, it inherited most of the company’s medical supplies business, which sells everything from syringes to surgical instruments.
Medtronic and Cardinal Health have entered into exclusive talks over the sale of the business, and a deal could be announced later this month, the sources said, cautioning that there was always a chance that the negotiations could end unsuccessfully.
The sources asked not to be identified because the negotiations are confidential. Medtronic and Cardinal Health declined to comment.
For Cardinal Health, the deal would boost efforts to build out its medical products business, which it has highlighted as a priority for dealmaking.