Smith & Nephew abandoned merger talks with Johnson & J&J's orthopaedics unit after refusing to appoint former CEO Namal Nawana as head of the combined company. Talks, valued at up to $34bn, had been aligned on financial terms but collapsed over leadership control. J&J sought to install Nawana, but Smith & Nephew insisted current CEO Deepak Nath remain in charge, a demand championed by Chair Rupert Soames.
The proposed deal would have created a transatlantic medical technology giant, with J&J shareholders owning 50.1 per cent. Smith & Nephew would have paid a roughly $10bn dividend to bridge valuation gaps. The collapse highlights ongoing leadership and pay disputes between the UK and US entities, following Nawana's 2019 departure over compensation disagreements.
Shares in Smith & Nephew have fallen 21 per cent over the past year, underperforming the FTSE 100.
Source: Financial Times Companies · Summarized by HeadlinesBriefing