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Kimberly-Clark Bets Big on Health with $40 Billion Kenvue Deal

By  |  November 3, 2025

Kimberly-Clark Corp. saw its shares plunge more than 15% — the steepest single-day decline in nearly 25 years — after announcing a $40 billion agreement to acquire Kenvue Inc., the consumer health company best known for Tylenol. The move, according to Bloomberg, represents a bold bet by the Kleenex maker to expand its presence in the global health and wellness market but also exposes it to new legal and regulatory risks.

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    Per Bloomberg, Kimberly-Clark agreed to pay $21.01 per share for Kenvue, marking a 46% premium to the target’s previous closing price. The deal values Kenvue at roughly $48.7 billion on an enterprise basis and would create a combined company generating about $32 billion in annual revenue. That scale could push Kimberly-Clark ahead of Unilever Plc, making it the world’s second-largest consumer health company after Procter & Gamble Co.

    While the merger promises growth, it also raises potential antitrust concerns. Combining two major players in categories such as baby care, women’s health, and wellness could invite scrutiny from U.S. and European regulators. Analysts cited by Bloomberg said the Federal Trade Commission may examine whether the enlarged company could limit competition in certain consumer health segments.

    Kenvue, spun off from Johnson & Johnson in 2023, has faced financial and political headwinds. Its flagship brand, Tylenol, has come under increased attention from the White House and the Trump administration over product safety issues, according to Bloomberg. The company’s stock had fallen nearly 33% this year before the announcement, reflecting ongoing investor unease.

    Despite the challenges, Kimberly-Clark Chief Executive Officer Mike Hsu said the merger would establish “a leading global health and wellness player” capable of “serving consumers through every stage of life.” Executives project $1.4 billion in incremental revenue within four years by leveraging Kenvue’s broad distribution network, particularly in emerging markets such as India.

    Kimberly-Clark plans to finance the purchase through a mix of cash, new debt issuance, and proceeds from the $3.4 billion sale of its international tissue business. JPMorgan Chase is backing the transaction with a $7.7 billion bridge loan, per Bloomberg filings.

    Still, investors reacted sharply, sending Kimberly-Clark’s stock to its lowest point in decades, underscoring market skepticism over the deal’s timing, debt load, and potential regulatory hurdles. Meanwhile, Kenvue shares rose nearly 20%, though still below the offer price — signaling optimism from Kenvue shareholders that the acquisition could bring much-needed stability to the struggling firm.

    Source: Bloomberg