The European Commission approved Kimberly-Clark's acquisition of Kenvue, removing the final major regulatory obstacle for the $48.7 billion deal. The approval is conditional on Kimberly-Clark fully complying with remedies offered in September to address EU antitrust concerns over feminine care markets in Czechia, Estonia, and Slovakia.
The deal, valued at $48.7 billion including debt, was signed in November 2025 and approved by shareholders of both companies in January 2026. Under the agreement, Kenvue holders receive $3.50 in cash plus 0.14625 Kimberly-Clark shares per share. With KMB stock down roughly 23% over 12 months to $94.36, the package is now worth about $17.30 per KVUE share.
While the strategic rationale remains strong — with management targeting $2.1 billion in run-rate synergies and a purchase multiple falling from 14.3x to 8.8x EBITDA — the primary risk lies in Kimberly-Clark's leveraged balance sheet. The company generated $2.78 billion in operating cash flow in 2025, nearly fully consumed by dividends and capex. Debt-to-equity stood near 374% at the end of June.
The bond exchange, with 74% to 98% of Kenvue bonds tendered, cannot settle before November 2. Closing is expected in Q4 2026, contingent on divestiture compliance and synergy delivery.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing