EU approves Kimberly-Clark's $40 billion Kenvue acquisition - Reuters

The European Commission has granted conditional approval for Kimberly‑Clark’s proposed acquisition of Kenvue, the consumer‑health spin‑off of Johnson & Johnson, in a deal valued at roughly $40 billion. The decision follows a review by the EU’s competition authority, which concluded that the transaction can proceed provided certain commitments are met to address competition concerns.

Under the conditions set by the Commission, Kimberly‑Clark must divest specific product lines and brands that overlap with Kenvue’s existing portfolio in the European market. The remedies are intended to preserve competition in categories such as baby care, feminine hygiene and skin health, where the combined entity would otherwise hold a dominant position.

The approval is conditional, meaning the merger cannot be completed until the stipulated divestitures are finalized and the European Commission confirms that the commitments have been implemented. Both companies have indicated that they will work with the regulator to satisfy the requirements and have expressed confidence that the timeline for closing the transaction will not be significantly delayed.

The EU decision is one of several regulatory clearances required for the deal, which also awaits approval from U.S. antitrust authorities and other jurisdictions where the companies operate. The Commission’s statement noted that the commitments are sufficient to ensure that consumers will continue to benefit from competitive pricing and product choice.

Kimberly‑Clark and Kenvue have welcomed the EU’s conditional clearance, describing it as a positive step toward completing the transaction, which they say will create a leading global consumer‑health company with expanded product offerings and a broader geographic reach.