Smith & Nephew fix requires bigger surgery
JNJ•Smith & Nephew’s merger talks with Johnson & Johnson’s orthopaedics arm collapsed over a dispute about who would lead the combined group. The £9 billion company faces pressure to offload its slower-growing bones unit, the columnist argues.
1. Merger talks collapsed
Smith & Nephew’s proposed merger with Johnson & Johnson’s orthopaedics arm fell apart over a dispute about who would run the combined company. The columnist said the deal had flaws and that its collapse was no disaster.
2. Pressure to reshape business
The episode will put pressure on the £9 billion company to address its valuation by offloading its slower-growing bones unit, the columnist wrote. The companies had declined to comment on an earlier report that talks were at an advanced stage, with the main financial terms and structure aligned.
