Medical technology company Smith & Nephew’s planned merger with Johnson & Johnson’s orthopedics business has been called off after disagreements over who would lead the combined company. The Financial Times reports.
The parties agreed on the main financial terms, but Smith & Nephew opposed former CEO Namal Nawana leading the business and wanted to retain current CEO Deepak Nath.
The deal valued Johnson & Johnson’s orthopedics business at up to 22 billion dollars.
Johnson & Johnson’s shareholders would receive 50.1 percent of the new company, while Smith & Nephew’s shareholders would own the remainder.
Smith & Nephew would also pay a debt-financed dividend of around 10 billion dollars to Johnson & Johnson.
