Kimberly-Clark is preparing concessions to address European Union antitrust concerns regarding its $40 billion acquisition of Kenvue, according to sources familiar with the matter reported by Reuters. The maker of Kleenex tissues and Huggies diapers announced the mega-merger late last year, aiming to integrate Kenvue’s extensive lineup of household brands, including Tylenol, Listerine, Aveeno, and Neutrogena.
The European Commission, serving as the EU’s primary competition authority, is set to formally notify Kimberly-Clark of its specific regulatory concerns. This feedback will determine whether Kimberly-Clark submits asset divestitures during the ongoing preliminary review—which concludes on September 29—or allows the regulator to launch an in-depth, four-month investigation.
While the European Commission declined to comment and neither company responded to requests for information, the transaction has already made progress in other international jurisdictions. Australian regulators cleared the deal on the condition that Kimberly-Clark divests Kenvue’s Carefree and Stayfree period care brands locally, while South African authorities granted conditional approval last month.
The move comes amid a challenging economic environment for consumer goods companies. With inflation-conscious shoppers increasingly searching for lower-cost alternatives, major manufacturers are adjusting product sizes, pruning underperforming assets, and turning to strategic acquisitions to maintain growth.
