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Smiths abandons talks over possible 7 bln pound merger with ICU Medical

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Sept 13 (Reuters) - British engineering firm Smiths Group Plc said on Thursday talks with U.S.-based ICU Medical Inc over a possible 7 billion pound ($9 billion) merger of their healthcare businesses had fallen through.

Discussions have ended because the parties have been unable to agree on terms, Smiths said in a statement.

"The board recognised the complementary strengths of both businesses. However, it was important that any such combination did not undervalue Smiths Medical and its prospects," the company said.

In May, Smiths said it was in very early stage discussions about a potential combination of its medical division with ICU, in a statement that did not disclose any of the financial details under discussion.

However, Reuters calculations suggested the deal could be worth 7 billion pounds.

Smiths, a provider of hospital equipment, industrial services and sensors to detect explosives, said it would continue to review all options for its businesses.

ICU Medical was not immediately available for comment outside business hours.

Smiths Group shares moved slightly lower following the news and were last down 0.6 percent at 15.58 pence. ICU Medical was flat in premarket trading on the Nasdaq.

(Reporting by Justin George Varghese in Bengaluru; additional reporting by Muvija M; Editing by Jan Harvey)