Smith & Nephew-J&J merger talks reportedly collapse over CEO role
SNN•Smith & Nephew’s advanced merger talks with Johnson & Johnson’s orthopaedics division reportedly collapsed over who would lead the combined company. Smith & Nephew’s offer valued J&J’s hip and knee unit at up to $22 billion, and J&J shareholders would have owned 50.1% of the combined company.
1. Talks collapse over leadership
Smith & Nephew held advanced merger talks with Johnson & Johnson to combine with J&J’s orthopaedics division, but discussions reportedly collapsed after the companies disagreed over who would run the combined business. The parties were aligned on main financial terms and transaction structure, but Smith & Nephew reportedly refused to agree to its former CEO Namal Nawana leading the merged company.
2. Proposed deal terms
Smith & Nephew had approached J&J earlier in the year with an offer valuing its hip and knee replacement unit at as much as $22 billion. J&J shareholders would have owned 50.1% of the combined company, and the companies had been considering a mid-October announcement. Both companies declined to comment on the report.
3. Unit separation plans
Nawana, who led Smith & Nephew for 18 months before stepping down as CEO in 2019, now heads J&J’s orthopaedics division. J&J announced plans last year to separate the business as DePuy Synthes and said last week it was leaning toward a spin-off, with separation targeted for mid-2027.
