Swiss medical device manufacturer Synthes said on Monday it is in preliminary takeover talks with health conglomerate Johnson & Johnson.
The deal could be worth up to $20bn and if completed would be one of the largest healthcare takeover deals in recent years, according to sources familiar with the process.
The company said in a statement: “In response to market speculation Synthes confirms that it is engaged in discussions with Johnson & Johnson about a potential business combination transaction.”
“No assurance can be given as to whether, when or on what terms any possible transaction might occur,” it added.
Synthes said it does not intend to make any further public statements unless and until a definitive agreement has been reached, or until discussions between the parties have terminated.
