U.S. medical device maker Medtronic (MDT.N) gained European Union regulatory approval on Friday for its $43 billion takeover of Covidien Plc (COV.N) after agreeing to sell its Irish rival's drug-coated balloon catheter business.

The deal will put Medtronic on about the same footing as global leader Johnson & Johnson (JNJ.N) and take it a step closer to moving to Ireland where it could have access to revenues earned outside the United States without paying taxes on them.

The European Commission said the sale of Covidien's Stellarex business would sooth concerns that the deal would reduce innovation in this area. Covidien clinched a deal to sell Stellarex to Spectranetics on Nov. 3.

U.S. authorities cleared the takeover earlier this week with the same condition.