The new Fortune 500 roster is out and a longtime corporate star from the Twin Cities has been dropped from the list: Medtronic. The move cuts Minnesota’s unusually large representation on the oft-cited ranking to 17 companies, from 18 last year.
Last June, the editor in charge of Fortune’s lists said that under its existing rules, the magazine would remove Medtronic from its 2015 list if the company followed through with its plan for an inversion. Medtronic unveiled such a plan a year ago, when it announced a merger with Irish-based Covidien. The $43 billion deal, closed early this year, allows Medtronic to realize tax benefits by moving its headquarters to Ireland. The merged company’s operational headquarters remains at its large corporate campus in Fridley.
To make the 500 list, Fortune requires that companies be based in the United States. The magazine also dropped at least one other company from its new list, generic pharmaceuticals maker Mylan, because of an inversion. Mylan, which had been based in Pittsburgh, moved its headquarters to the Netherlands.
Medtronic spokesperson Fernando Vivanco said the company was not surprised by the publication’s decision. “Fortune magazine determines the rules,” Vivanco said.
Medtronic was 173rd on the list last year. Fortune uses annual revenue to rank the companies on the list. The five largest companies on this year’s list are Wal Mart, $485 billion; Exxon Mobil, $383 billion; Chevron, $204 billion; Berkshire Hathaway, $195 billion; and Apple, $183 billion.
All of the other 17 Minnesota companies that made the list last year appeared again this year. They are UnitedHealth Group, 14th; Target, 36th; CHS, 69th; Best Buy, 72nd; 3M, 98th; U.S. Bancorp, 138th; SuperValu, 164th; General Mills, 171st; Land O’ Lakes, 203rd; Ecolab, 213th; C.H. Robinson, 225th; Ameriprise, 247th; Xcel Energy, 255th; Hormel, 300th; Mosaic, 320th; Thrivent, 333rd; and St. Jude Medical, 466th.