Medtronic Throws Its Hat in the Ring for Smith & Nephew Takeover

Rumors of a major Smith & Nephew takeover continue to swirl. Stryker has been reluctant to confirm anything solid, but officials have said the Kalamazoo, Mich.-based orthopedic device company is “interested.” Now Medtronic Inc. has entered the mix, with Bloomberg reporting that the Minneapolis, Minn.-based medtech giant is discussing a takeover bid.

According to Bloomberg’s sources, the takeover bid would be structured as a tax inversion deal, where Medtronic would use Smith & Nephew’s corporate office to reap the tax benefits.

The report added that Medtronic is looking to expand offerings in the heart, muscle and skeleton and diabetes products. Smith & Nephew currently sells knee and hip implants, as well as trauma implants.

Analysts are viewing Medtronic as a more serious bidder than Stryker.