Rumors earlier today that Stryker (NYSE: SYK ) was considering acquiring rival Smith & Nephew (NYSE: SNN ) were promptly shut down by Stryker management. The UK takeover laws now require a six month wait before Stryker could put in a bid for the company.
But would such a deal make sense if it were to go through?
There are a number of potential reasons to like such a deal -- some scale benefits by combining product lines, potential benefits stemming from a tax inversion, and the potential for Stryker to expand into new product areas.
In the video below, from Market Checkup, the Motley Fool's health care-focused investing show, health care analysts Michael Douglass and David Williamson lay out the case for why, if Stryker's management isn't planning to acquire Smith & Nephew, maybe they should think about it.
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