Kimberly-Clark is preparing concessions to address antitrust concerns raised by the European Union over its proposed US$40 billion acquisition of Kenvue, potentially helping the deal secure regulatory approval following the European Commission’s preliminary review, people familiar with the matter said.
The maker of Kleenex tissues and Huggies diapers announced the acquisition in November last year. The transaction would significantly expand Kimberly-Clark’s portfolio with Kenvue brands including Listerine mouthwash and skincare names such as Aveeno and Neutrogena.
The European Commission, the European Union’s competition authority, is expected to formally communicate its concerns to Kimberly-Clark this week, according to the sources.
That communication will help determine whether the company submits concessions during the regulator’s preliminary review, which is scheduled to end on September 29, or waits for the Commission to launch a more in-depth investigation that could last approximately four months.
The European Commission declined to comment. Kimberly-Clark and Kenvue did not respond to emailed requests for comment.
REGULATORY APPROVALS IN OTHER MARKETS
The transaction has already received conditional approval in other markets. In Australia, the competition regulator cleared the deal earlier this month on the condition that Kimberly-Clark divest Kenvue’s Carefree and Stayfree menstrual care brands in the country.
The Australian Competition and Consumer Commission (ACCC) said the divestiture was required to address competition concerns in the period care market, where Kimberly-Clark and Kenvue are two of the three major suppliers.
The acquisition also received conditional approval in South Africa last month, adding to the regulatory progress surrounding the transaction.
DEAL COMES AMID CHANGING CONSUMER MARKET
The acquisition comes as consumer goods companies navigate a market in which shoppers are increasingly focused on value. Companies have responded by adjusting product formats, including investments in smaller pack sizes, while also reviewing portfolios and divesting businesses that no longer fit their strategic priorities.
For Kimberly-Clark, the Kenvue acquisition would bring a broad range of consumer health and personal care brands into its portfolio, expanding its presence beyond its established categories in tissue, diapers and other personal care products.
The European Commission’s preliminary review is now a key step in determining the regulatory path for the proposed transaction, with September 29 marking the end of the current phase.
