Abbott and St Jude Medical have announced a deal for Abbott to acquire St Jude Medical, strengthening Abbott’s position in the cardiovascular, diabetes, vision, and neuromodulation markets.

According to the announcement, the new company will occupy the first or second position across the cardiovascular device markets, with the combined annual sales from Abbott’s cardiovascular business unit and St Jude Medical totaling approximately $8.7 billion. Abbott estimates its aggregate market opportunity at $30 billion

“Bringing together these two great companies will create a premier medical device business and immediately advance Abbott’s strategic and competitive position,” said Miles D. White, chairman and CEO, Abbott. “The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world.”

Abbott will reportedly assume or refinance St Jude Medical’s debt of approximately $5.7 billion. The deal has been approved by the boards of directors of both companies, but is subject to approval from St Jude Medical’s shareholders and regulatory approvals. The transaction is expected to close in the fourth quarter of 2016.

For more details, visit the Abbott announcement.