Smith & Nephew and Johnson & Johnson merger talks collapse

Talks to combine Smith & Nephew with Johnson & Johnson's orthopaedics division, in a deal that would have valued the unit at as much as 22 billion dollars, collapsed at the last minute over who would lead the merged company, the Financial Times reported.

Why it matters: The two sides were aligned on the main financial terms, so the failure leaves Johnson & Johnson's planned separation of the unit, to be named DePuy Synthes, without a buyer after private equity interest also produced no deal, and leaves Smith & Nephew independent at roughly half the unit's proposed value.

Data as of Reuters report of October 23, 2026, read in full via Investing.com, reporting the Financial Times of October 23, 2026, citing people familiar with the matter; the Financial Times report itself is paywalled and was not read directly, and neither company confirmed the talks. Developing item.

Smith & Nephew’s talks to combine with Johnson & Johnson’s orthopaedics division fell apart after the London-listed group refused to agree to its former chief executive, Namal Nawana, leading the merged business, the Financial Times reported, citing people familiar with the matter. The talks were at an advanced stage and the companies were aligned on the main financial terms and structure, but Smith & Nephew said it would only agree if its own chief executive, Deepak Nath, remained in charge; Nawana left in 2019 after 18 months when the company could not meet his pay demands. The deal would have valued Johnson & Johnson’s hip and knee replacement unit at as much as 22 billion dollars, almost double Smith & Nephew’s 9.4 billion pound (12.58 billion dollar) market capitalisation; a Smith & Nephew spokesperson declined to comment and Johnson & Johnson could not be reached outside business hours.

Smith & Nephew and Johnson & Johnson merger talks collapse

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