The European Commission has conditionally approved Kimberly-Clark’s approximately $40 billion acquisition of Kenvue, removing an important regulatory obstacle to one of the largest consumer-health transactions currently pending.
Approval followed commitments from Kimberly-Clark to divest its tampon and other feminine-hygiene brands across the European Economic Area.
The assets include Kotex, including the Lidie sub-brand, as well as Camelia and Record.
European regulators had identified competition concerns in tampon markets including the Czech Republic, Estonia and Slovakia.
The divestiture package is intended to preserve an independent competitor after the transaction.
The deal combines Kimberly-Clark’s consumer brands, including Huggies and Kleenex, with Kenvue’s portfolio of consumer-health products, which includes Tylenol, Listerine, Aveeno and Neutrogena.
The European review had become a significant milestone after Kimberly-Clark submitted remedies in September and regulators extended their decision deadline to October 13.
Conditional clearance means the transaction has passed this stage of European merger review, but the companies must comply with the agreed remedies and any remaining closing requirements before the acquisition is completed.
For investors, the decision reduces regulatory uncertainty surrounding a transaction designed to create a much larger global consumer-health and personal-care business.
