Perhaps no health care company has as many moving parts as Johnson & Johnson , the sector's most recognizable name that commands a dominant position over seemingly every major medical industry, from consumer health to pharmaceuticals. But even Johnson & Johnson isn't afraid to shake things up when looking for growth, and the company's looking at doing that right now.

For months, talk has waxed and waned over whether J&J would move to sell its Ortho Clinical Diagnostics division. Now that talk is heating up: Sources close to the matter have said that J&J is kicking off the opening moves of the division's sale, which some analysts have said could earn the company up to $5 billion. While the division isn't a major part of J&J, it could be a huge win for a company that has changed dramatically in the past year and boasts a standout diagnostics division of its own: Abbott Labs .

But is Abbott the right suitor for J&J's ortho business from an investor's standpoint? In the video below, Fool contributor Dan Carroll outlines what a potential Johnson & Johnson-Abbott Labs deal for the ortho business could mean for each company and stock -- and what investors should keep an eye out for going forward.


Johnson & Johnson and Abbott make up more than just potential business partners; they're also two of health care's standout stocks over the long term. For investors focused on maximizing their financial potential, long-term investing is the simplest and easiest method to true investing success. The Motley Fool's special free report "3 Stocks That Will Help You Retire Rich" names specific investment opportunities that could help you build long-term wealth and help you retire well. The Fool also outlines critical wealth-building strategies that every investor should know. Click here to keep reading.

The article Will Abbott and Johnson & Johnson Make a Deal? originally appeared on Fool.com.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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