Smith & Nephew talks with J&J on orthopaedics deal fail over CEO role
SNN•Smith & Nephew’s merger talks with Johnson & Johnson’s orthopaedics division collapsed over who would lead the combined business. The proposed deal reportedly valued the J&J unit at up to $22 billion, with J&J shareholders set to own 50.1% of the combined company.
1. Talks collapse over leadership
Smith & Nephew held talks to merge with Johnson & Johnson’s orthopaedics division, but discussions collapsed over who would run the enlarged group, a person familiar with the matter said. The talks reportedly reached an advanced stage, with the companies aligned on the main financial terms and structure.
2. Competing CEO preferences
J&J reportedly wanted former Smith & Nephew CEO Namal Nawana, who now heads J&J’s orthopaedics division, to lead the combined business. Smith & Nephew insisted that its current CEO, Deepak Nath, remain in charge.
3. Proposed deal terms
Smith & Nephew approached J&J earlier this 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. J&J is leaning toward spinning off the orthopaedics unit, with separation targeted for mid-2027.
