FTSE 100 engineering giant the Smiths Group confirmed today it in discussions to merge its medical group with US-listed ICU Medical.
Reports that Smiths was in talks to merge its medical division with ICU emerged over the weekend.
Smiths is valued at around £7bn with its healthcare division worth a potential £2bn.
A merger with ICU could create a combined company worth £6bn.
Smiths Group's share price rose more than 2.8 per cent this morning.
In a statement to the stock market this morning Smiths confirmed that “it is in very early stage discussions about a potential combination of its medical division with ICU Medical”.
“The board of Smiths routinely reviews all options for the group's portfolio of businesses to maximise value for Smiths shareholders.
“There can be no certainty that a transaction will be concluded,” it said.