Smith & Nephew merger talks with J&J orthopaedics unit reportedly collapse over CEO role
SNN•Smith & Nephew’s talks to combine with Johnson & Johnson’s orthopaedics division reportedly collapsed over who would lead the merged company. The proposed deal would have valued J&J’s hip and knee replacement unit at up to $22 billion, the report said.
1. Talks collapse over leadership
Smith & Nephew’s talks with Johnson & Johnson to combine with the U.S. group’s orthopaedics division fell apart after Smith & Nephew refused to agree to its former CEO leading the merged business, the Financial Times reported, citing people familiar with the matter. The companies were aligned on the main financial terms and transaction structure, but disagreed over who would run the enlarged company.
2. Proposed unit valuation
The deal would have valued J&J’s hip and knee replacement unit at as much as $22 billion, the report said. Smith & Nephew would only agree if its own boss, Deepak Nath, remained CEO, according to the report. The company declined to comment, and J&J could not immediately be reached.
3. Unit plans
Smith & Nephew’s former CEO Namal Nawana left in 2019 after 18 months because the company could not meet his pay demands, the report said. J&J announced plans to separate its orthopaedics business into a standalone company named DePuy Synthes in October 2025; the unit has since drawn private equity interest, but no deal has materialised.
