Update: Market Chatter: Johnson & Johnson Orthopedics, Smith & Nephew Merger Collapsed Over Leadership Dispute

06:23 AM EDT, 10/23/2026 (MT Newswires) -- (Updates with Smith & Nephew's clarification in the second paragraph.) Johnson & Johnson's (JNJ) orthopedics business' proposed merger with Smith & Nephew (SNN) has collapsed over a disagreement on who would run the company, the Financial Times reported Friday, citing people familiar with the matter. Smith & Nephew ultimately rejected the plan to create a $34 billion medical technology company over Johnson & Johnson's insistence to install its former Chief Executive Namal Nawana, who left the company in 2019 over a pay dispute, at its helm, the report said. Smith & Nephew said in an email that it "rejected the proposed CEO appointment, not the deal." Smith & Nephew wanted to keep current Chief Executive Deepak Nath, the report said. The proposed deal valued the company at around $22 billion, the report said. Smith & Nephew declined to comment. Johnson & Johnson did not immediately reply to MT Newswires' request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)