23rd Oct 2026 12:09
(Alliance News) - Smith & Nephew PLC came close to combining with Johnson & Johnson's DePuy Synthes orthopaedics unit, but discussions fell apart over a leadership disagreement, the Financial Times reported on Friday.
It said both companies declined to comment.
Citing people familiar with the matter, the FT said the talks were at an advanced stage, with both firms in agreement on the proposed transaction's main financial terms.
However, several weeks ago they "collapsed at the last minute" after Watford, England-based medical technology firm S&N refused to allow former chief executive Namal Nawana to lead the combined business. The company instead favoured current CEO Deepak Nath, the FT's sources said.
Nawana, who now leads J&J's orthopaedics division, left Smith & Nephew in 2019 when it "could not meet his pay demands".
The FT's sources said S&N approached New Jersey-based healthcare company Johnson & Johnson earlier in 2026 with the combination proposal, which valued the orthopaedics unit at around USD22 billion.
Smith & Nephew shares were 1.4% higher at 1,150.00 pence on Friday in London, giving it a GBP9.61 billion market capitalisation. Johnson & Johnson shares were down 0.6% at USD265.90 in New York pre-market trading.
Some of the people who spoke to the FT said that S&N "would likely have elevated its US listing as part of the merger," but would have also kept its London listing.
J&J now favours spinning off the orthopaedics unit, Chief Financial Officer Joseph Wolk said alongside its third-quarter results announcement last week.
By Emma Curzon, Alliance News reporter
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