Kimberly-Clark to buy Tylenol maker Kenvue in landmark $40bn merger

Core Viewpoint - Kimberly-Clark is set to acquire Kenvue for over $40 billion, marking a significant deal in the consumer sector amid challenges faced by Kenvue, including legal scrutiny and declining demand [1][2]. Group 1: Acquisition Details - The acquisition will provide Kimberly-Clark with Kenvue's extensive brand portfolio, including Listerine, Band-Aid, Aveeno, and Neutrogena, with combined annual revenues projected at approximately $32 billion [3]. - Kimberly-Clark anticipates around $2.1 billion in annual cost savings from the acquisition, which is expected to close in the second half of 2026 [3]. Group 2: Market Context - The deal comes at a time when Kenvue is facing negative litigation and regulatory challenges, including lawsuits related to Tylenol and baby powder products, which have affected investor sentiment [2][4]. - The consumer goods market is increasingly competitive, with companies like Kimberly-Clark and Procter & Gamble adapting to a more value-seeking consumer by adjusting product sizes and restructuring underperforming units [5]. Group 3: Strategic Moves - Kimberly-Clark's acquisition follows its sale of a majority stake in its international tissue business to Brazilian pulp maker Suzano, with proceeds expected to support the Kenvue buyout [5].