Kimberly-Clark Prepares Asset Sales to Secure EU Approval for $40B Kenvue Deal, Sources Say

Kimberly-Clark is preparing to offer concessions to European Union antitrust regulators to address concerns over its proposed $40 billion acquisition of Kenvue, according to people familiar with the matter. The move is aimed at securing approval for the deal during its preliminary review and avoiding a more protracted investigation.

EU Regulatory Timeline

The European Commission, the EU's competition authority, is expected to formally communicate its concerns to Kimberly-Clark this week, the sources said. This will prompt the company to decide whether to propose remedies, such as asset sales, before the preliminary review deadline of September 29.

Offering concessions at this stage could allow Kimberly-Clark to gain clearance without triggering a full-scale, four-month investigation. The European Commission, Kimberly-Clark, and Kenvue did not respond to requests for comment, as reported by Reuters.

Deal Context and Global Approvals

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Announced in November of last year, the acquisition would unite Kimberly-Clark's portfolio, including Kleenex tissues and Huggies diapers, with Kenvue's extensive range of consumer health brands like Tylenol, Listerine, Aveeno, and Neutrogena. The merger comes as consumer goods companies navigate a challenging environment, focusing on brand consolidation and value offerings.

The deal has already faced scrutiny from other global regulators. It received conditional clearance in several markets:

• Australia: Approved on the condition that Kimberly-Clark divests Kenvue’s Carefree and Stayfree feminine care brands.
• South Africa: Secured conditional approval last month.

These prior decisions suggest that regulators are focused on potential market concentration in specific product categories.