On Monday, Synthes Inc, a Swiss medical technology group, accounted that it was in takeover talks with Johnson & Johnson, the US healthcare company, after rumors were swirling around that the deal could end up being worth around $20 million. However, the company did not give any further details about the assurances of the potential transaction.

If the deal goes through, it could mean that Johnson & Johnson would be able to boost their medical equipment business, which alone made up 40% of the company’s revenue in 2010. If they bought Synthes, they would acquire the making of its plates, nails and screws to fix broken bones.

After the announcement, Synthes shares went up 6.71% in the French market, but down 1.26% in the Swiss market. According to reports, no formal offer has yet been made for the company to be overtaken.

Across the pharmaceutical industry, manufacturers of medical devices are trying to consolidate as a way to diversify away from drugs and products that have come to the end of their patents.

In addition to selling this unit of their company to Johnson & Johnson, Synthes would also like to sell their Norian unit which plead guilty to a felony and 110 misdemeanor accounts for conducting unauthorized trials in bone-mending cement products.