FT Reports End to Smith & Nephew and J&J Merger Talks
Discussions about combining Smith & Nephew with Johnson & Johnson’s orthopaedics business ended several weeks before an October 23, 2026, Reuters account of a Financial Times report. Citing people familiar with the discussions, the Financial Times attributed the breakdown to a disagreement between the companies over leadership of the proposed business.
Under the proposal, J&J’s hip and knee replacement operations carried a valuation of up to $22 billion, according to the Financial Times account. Smith & Nephew had initiated contact with J&J earlier in 2026. The report said agreement had been reached on the transaction’s principal financial provisions and structure, including a proposed 50.1% ownership stake for J&J shareholders in the combined company.
The leadership positions described in the report differed: J&J’s proposed chief executive was Namal Nawana, who previously held that role at Smith & Nephew, while Smith & Nephew’s position was for its current CEO, Deepak Nath, to retain leadership. The Financial Times account identified that disagreement as the point when negotiations ended.
J&J had separately announced a plan on October 14, 2025, to establish its orthopaedics operations as an independent company under the DePuy Synthes name. That announcement described a planned separation, not a completed transaction.
In its separation announcement, J&J set an 18-to-24-month completion target. The company said the process depended on the necessary consultations, approval from its board and regulatory authorisations. Neither the schedule nor the form of the separation was assured, according to J&J.
The orthopaedics operations recorded about $9.2 billion in fiscal 2024 sales, according to J&J. In the October 2025 announcement, the company estimated that the worldwide orthopaedics market to be served by the planned DePuy Synthes company exceeded $50 billion.
* This article is based on publicly available information at the time of writing.