Kimberly-Clark Prepares Asset Sales to Address EU Antitrust Concerns Over Kenvue Acquisition
Kimberly-Clark Corporation (NASDAQ:KMB) is working on asset sales to address European Union antitrust concerns regarding its $40 billion acquisition of Kenvue. The company aims to secure approval from the European Commission by September 29, avoiding a longer regulatory review process that could delay or complicate the deal. The transaction would create a consumer-health and personal-care business with annual revenue around $32 billion and adjusted EBITDA of about $7 billion. Kimberly-Clark expects significant cost synergies but must invest roughly $2.5 billion to achieve them, making asset divestitures crucial for preserving economic benefits. A similar conditional approval was granted in Australia after agreeing to sell certain Kenvue brands. If the EU approves by the deadline, it would reduce uncertainty and allow integration efforts to proceed smoothly. However, if regulators demand more extensive sales than anticipated, it could diminish the value of the acquisition and increase execution risks for Kimberly-Clark.
Topics: divestitures M&A regulation