FTC OKs Tyco’s Purchase of Mallinckrodt

The Federal Trade Commission approved Tyco International Ltd.’s $4.2-billion purchase of Mallinckrodt Inc. on condition that Tyco sell one of its medical supply lines to preserve competition in a concentrated market. Bermuda-based Tyco and Mallinckrodt of St. Louis are the two largest makers of disposable medical products The FTC required Tyco to sell within 10 days its line of endotracheal tubes, which are used to administer oxygen and anesthesia to patients during operations. Tyco announced a month ago it was selling its business to Hudson Respiratory Inc. of Temecula and would retain the Mallinckrodt line. Tyco’s business--the one being sold off--accounts for only 14% of the market, while Mallinckrodt’s accounts for 72%, the FTC said. Tyco shares fell $3.44 to close at $46.88 on the NYSE.