Kimberly-Clark’s acquisition of Kenvue approved subject to sale of Carefree and Stayfree brands

The ACCC has approved Kimberly-Clark Corporation’s proposal to acquire Kenvue Inc., subject to conditions that Kimberly-Clark divest Kenvue’s Carefree and Stayfree period care brands in Australia to a purchaser approved by the ACCC.

Kimberly-Clark and Kenvue both supply period care products in Australia. Kimberly-Clark supplies tampons, sanitary pads and panty liners under the U by Kotex brand, while Kenvue supplies these products under the Carefree and Stayfree brands.

“We consider that without the divestiture of the Carefree and Stayfree brands, the acquisition could substantially lessen competition in the supply of period care products in Australia,” ACCC Commissioner Dr Philip Williams said.

Kimberly-Clark and Kenvue are two of the three major suppliers of period care products in Australia. The third, Essity, supplies the Libra and TOM Organic brands. Without the divestiture conditions, Kimberly-Clark’s acquisition of Kenvue would have reduced the number of major suppliers from three to two.

“The divestiture will preserve an independent competitor in the supply of period care products in Australia and maintain the competition that would otherwise be lost through the acquisition,” Dr Williams said.

“Outcomes such as this demonstrate that the new merger regime can flexibly address competition concerns while still allowing transactions to occur promptly.”

This is the fourth acquisition that has been cleared with conditions under Australia’s new merger control regime. The regime provides the ACCC with greater oversight of acquisitions that raise potential competition concerns.

More information, including the Phase 1 Determination and undertaking, is available on the ACCC’s Acquisitions Register: Kimberly-Clark Corporation - Kenvue Inc.

Kimberly-Clark and Kenvue are global corporations which produce and sell consumer and personal care products. Kimberly-Clark’s brands include Huggies, Kleenex and Viva. Kenvue’s brands include Band-Aid, Zyrtec and Aveeno.