Global consumer goods giant Kimberly-Clark is seeking to acquire Kenvue, the world’s largest pure play consumer health company.
New Zealand’s Commerce Commission is reviewing the application for the domestic portion of the merger. Kenvue’s key brands in Australia and New Zealand (ANZ) include Tylenol, Neutrogena, and Listerine.
Both Kimberly-Clark and Kenvue sell feminine hygiene products in New Zealand. The commission said that Kimberly-Clark is proposing to divest Kenvue’s entire feminine hygiene product line in ANZ to avoid overlap and to avoid impact on the market’s competitiveness.
The commission is also reviewing whether the acquisition will weaken competition in the feminine hygiene sector. It expects to reach a decision by April 28.
Globally, the acquisition is a US$48.7 billion deal. Forbes reports that the goal is to create a company capable of $32 billion in annual revenue.
On January 29, 96 per cent of Kimberly-Clark’s shareholders voted in favour of the deal, 99 per cent of Kenvue’s shareholders voted the same way. The deal is expected to close in the second half of the fiscal year.
