Corrected: UPDATE 1-Smith & Nephew merger talks with J&J orthopaedics unit collapse over CEO role, FT reports

Johnson & Johnson

Today 08:19

Corrects paragraph 4 to reflect the FT's reporting that Smith & Nephew rejected the proposed CEO appointment, not the deal
Oct 23 (Reuters) - Smith & Nephew's SN.L talks with Johnson & Johnson JNJ.N to combine with the US group’s orthopaedics division fell apart after the London-listed group refused to agree to its former CEO leading the merged business, the Financial Times reported on Friday, citing people familiar with the matter.
Talks about a merger between Smith & Nephew and the J&J unit were at an advanced stage, with both companies aligned on the main financial terms and structure of a transaction, but collapsed at the last minute after disagreement over who would run the enlarged company, the report said.
Smith & Nephew's former CEO Namal Nawana left in 2019 after 18 months in the role because the UK medical devices company could not meet his pay demands, the FT report said.     
Smith & Nephew refused the proposed appointment, saying it would only agree to a deal if its own boss Deepak Nath remained CEO, the report added.
A Smith & Nephew spokesperson declined to comment on the report. J&J could not be immediately reached outside of business hours.
The proposed deal would have valued J&J's hip and knee replacement unit at as much as $22 billion, almost double Smith & Nephew’s £9.4 billion ($12.58 billion) market capitalisation, the report said.
J&J announced plans to separate its orthopaedics business into a standalone company named DePuy Synthes in October 2025. The unit, which was reportedly seeking a $20 billion price tag, has since drawn private equity interest, but no deal has materialised yet. 
         
($1 = 0.7470 pounds)

 (Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Yamini.Kalia@thomsonreuters.com))