A proposed $34bn merger between Johnson & Johnson's orthopaedics business and UK's Smith & Nephew collapsed at the last minute over disagreements on leadership. Both companies insisted their own executives run the combined entity: J&J backed Namal Nawana, while Smith & Nephew favored Deepak Nath. The impasse occurred despite alignment on financial terms and deal structure, with talks set for a mid-October announcement.
Smith & Nephew's chair Rupert Soames made leadership a red line, cooling J&J's interest. Tensions stem from past conflicts, including Nawana's 2019 departure from Smith & Nephew over pay disputes. J&N has faced high CEO turnover linked to US-UK pay gaps.
The failed deal leaves J&J considering a spin-off of its orthopaedics unit, while Smith & Nephew seeks alternatives as its shares remain 21% down over 12 months.
Source: Financial Times Companies · Summarized by HeadlinesBriefing