THE WHAT? Kimberly-Clark is reportedly preparing concessions to address European Union competition concerns over its US$40 billion acquisition of Kenvue as it seeks regulatory approval for the transaction.
THE DETAILS The European Commission is expected to outline its competition concerns ahead of the September 29 deadline for its preliminary review, after which Kimberly-Clark could offer concessions or face a more extensive four-month investigation. The acquisition would add Kenvue’s consumer health and personal care portfolio, including Neutrogena, Aveeno and Listerine, to Kimberly-Clark’s existing business. The transaction has already received conditional approval in Australia, where Kimberly-Clark must divest Kenvue’s Carefree and Stayfree period care brands, and in South Africa.
THE WHY? Potential divestments highlight the competition issues created by combining two large global consumer goods portfolios, with regulatory concessions becoming increasingly important to completing a deal that would significantly expand Kimberly-Clark’s presence across skincare, personal care and consumer health.
Source: Reuters
