AUSTRALIA’S competition regulator on Wednesday approved Kimberly-Clark’s proposed $40-billion takeover of Kenvue, on condition the company divests Kenvue’s Carefree and Stayfree period care brands in the country to address competition concerns.
The Australian Competition and Consumer Commission (ACCC) said the period care brands should be divested to an approved purchaser.
The regulator said without the divestment, the deal could lessen competition in period care products supply, with both companies being two of the three major suppliers of period care products in Australia.
The deal, announced in November, would allow Kimberly-Clark to bring in Kenvue’s famous global brands such as Listerine mouthwash and Neutrogena, but would expose the company to lawsuits Kenvue faces over Tylenol.
Kimberly-Clark has also sought approval from EU regulators for the takeover, documents on the EU Commission’s website showed last week.
“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,” ACCC Commissioner Philip Williams said.