Medtronic said to be near a deal for Covidien

Medtronic is nearing a deal to buy a competitor, Covidien, for more than $45 billion, in a deal that would help lower its corporate tax rate, people briefed on the matter said Saturday.

The two sides are in advanced discussions, and a transaction could be announced as soon as Monday, these people said. A takeover would be likely to value Covidien at between $45 billion and $50 billion.

Talks are ongoing and may still fall apart. Representatives for Medtronic and Covidien declined to comment.

If completed, Medtronic would be the latest big U.S. company to reincorporate abroad through a so- called inversion. As Covidien is based in Ireland, where the tax rate is substantially lower than it is in the United States, Medtronic would be likely to relocate there.

Inversions, in which a U.S. companyacquiresanoverseas competitor, allows buyers to substantially reduce their tax rate and make it easier to access cash held overseas.

A wave of U.S. corporations have inverted in recent years, with health care companies leading the charge.

Earlier this year, Pfizer attempted to complete the biggest-ever inversion with its aborted attempt to buy AstraZeneca for $ 119 billion. Other drug companies, including Endo Health Solutions, from Malvern, Pa.; Perrigo, from Allegan, Mich.; and Actavis, based in Parsippany, N.J., have all relocated to Ireland through inversions.

Companies in other industries, including technology and industrials, have also inverted. Even Chiquita, the banana maker, struck a deal in March to reincorporate abroad through an inversion.

But in recent months, political resistance to inversions has been growing. Lawmakers in the House and Senate have proposed bills aimed at curbing inversions, and the budget President Barack Obama recently submitted to Congress included language that would effectively bar the process.