Key facts
- Smith & Nephew refused a merger with J&J's orthopaedics unit over CEO leadership.
- The deal collapsed because Smith & Nephew insisted its current CEO, Deepak Nath, would lead the combined entity.
- The proposed deal would have valued J&J's unit at up to $22 billion.
- Smith & Nephew's former CEO, Namal Nawana, left in 2019 over pay demands.
Smith & Nephew's merger talks with Johnson & Johnson's orthopaedics division collapsed because the companies could not agree on who would lead the combined business, the Financial Times reported on Friday, citing people familiar with the matter. The London-listed company refused the deal unless its current CEO, Deepak Nath, remained in charge. Talks had been at an advanced stage with financial terms aligned, but disagreement over leadership caused the collapse. Smith & Nephew's former CEO, Namal Nawana, departed in 2019 due to unmet pay demands. The proposed deal would have valued J&J's hip and knee replacement unit at up to $22 billion, nearly double Smith & Nephew's market capitalization of £9.4 billion ($12.58 billion). Johnson & Johnson announced plans in October 2025 to spin off its orthopaedics business into a standalone company named DePuy Synthes.