The maker of Kleenex tissues and Huggies nappies is buying the firm behind Listerine mouthwash and the controversial painkiller Tylenol in a £37billion deal.
US consumer goods giant Kimberly-Clark has agreed to acquire rival Kenvue in what will be one of the biggest takeovers of the year so far.
The deal stunned Wall Street and sent shares in Kenvue up 15 per cent, while Kimberly-Clark fell 13 per cent.
The price tag raised eyebrows amid a row between Kenvue and the White House over Donald Trump’s unproven claims that the use of Tylenol during pregnancy can cause autism in children.
Jay Woods at Freedom Capital Markets said the market reaction suggests some investors believe Kimberly-Clark ‘may be buying damaged goods’.
Despite the concerns, Kimberly-Clark said the combined firm – which would bring together its other brands such as Andrex with Kenvue’s vast portfolio including Aveeno, Neutrogena and the Johnson’s Baby range – would generate annual revenues of £24billion.
Shock move: US consumer goods giant Kimberly-Clark has agreed to acquire rival Kenvue in what will be one of the biggest takeovers of the year so far
Kenvue, which was spun out of Johnson & Johnson in 2023, has endured a torrid year, with its shares down a third before yesterday’s rally.
US sales of Tylenol tumbled after Trump urged pregnant women to stop taking the painkiller in September.
Danni Hewson from broker AJ Bell said: ‘Kenvue comes with some baggage, not least a rocky relationship with the White House.’
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