Smiths Group PLC (LON:SMIN) has confirmed that it is in very early stage discussions about a potential combination of its medical division with US firm ICU Medical Inc. (NASDAQ:ICUI).
In a brief statement noting press speculation regarding discussions involving its Smiths Medical business, the FTSE 100-listed firm said: “The Board of Smiths routinely reviews all options for the Group's portfolio of businesses to maximise value for Smiths shareholders.”
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It added: “There can be no certainty that a transaction will be concluded.”
A report on Sky News’ website said the structure of any deal with ICU - which makes devices used in infusion therapy and oncology -has not been agreed but is thought to be more likely to culminate in a joint venture rather than an outright sale by Smiths.
ICU has a market value of US$5.6bn (£4.2bn), while Smiths Medical is likely to be worth in excess of £2bn. Sky News added.
Ii said the US-based company has a long track record of takeovers including the US$900m purchase completed last year of Pfizer's Hospira Infusion Systems arm.
In early morning trading, Smiths Group shares were up 3.6% at 1,787p.
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