Australia Approves Kimberly-Clark-Kenvue Deal, Mandates Brand Divestment

Australia's competition watchdog has given the green light to Kimberly-Clark's proposed $40 billion acquisition of Kenvue, but with a significant condition: the company must sell off two of Kenvue's period care brands in the country.

The Australian Competition and Consumer Commission (ACCC) announced on Wednesday that the deal could proceed only if Kimberly-Clark divests the Carefree and Stayfree brands to an approved buyer. The regulator's concern stems from the fact that both companies are among the three largest suppliers of period care products in Australia, and the merger would have reduced competition in that market.

"The divestiture will preserve an independent competitor in the supply of period care products in Australia and maintain the competition that would otherwise be lost through the acquisition," said ACCC Commissioner Philip Williams.

The acquisition, first announced in November, would bring Kenvue's well-known global brands—including Listerine mouthwash and Neutrogena skincare—under Kimberly-Clark's umbrella. However, it also exposes the company to ongoing litigation that Kenvue faces related to Tylenol.

Kimberly-Clark is also seeking regulatory approval from the European Union for the takeover, with documents filed with the EU Commission last week indicating the review process is underway.