Medtronic to Split Off Diabetes Unit as Tariffs Hit Earnings

Medtronic Plc plans to separate its diabetes business into a standalone company, helping the medical-devices company focus on more profitable operations as the US-China trade dispute threatens its earnings.

The unit will become a new publicly traded entity, with an initial public offering the favored route, according to a statement Wednesday. Diabetes accounted for about 8% of Medtronic’s $33.5 billion revenue in the latest fiscal year.