Kimberly-Clark is considering concessions, potentially including asset sales, to address European Union antitrust concerns over its proposed $40 billion acquisition of Kenvue, according to people familiar with the matter.
The move, first reported by Reuters on September 14, could help Kimberly-Clark secure European Commission approval during the regulator's preliminary review, which ends on September 29.
Kimberly-Clark shares rose more than 2.7% on the news in early trading, while Kenvue gained 2.3%.
European Commission set to outline concerns
The European Commission, which is responsible for enforcing EU competition rules, is expected to formally communicate its competition concerns to Kimberly-Clark this week, according to the sources.
That communication could determine whether Kimberly-Clark submits concessions during the preliminary review or waits for the Commission to open a full-scale investigation after September 29.
The European Commission formally opened its review after receiving notification of the transaction on August 25. The case covers Kimberly-Clark's proposed acquisition of sole control of Kenvue. The Commission's filing identifies overlapping activities in areas including feminine hygiene, alongside Kenvue's broader consumer-health portfolio.
Deal would expand Kimberly-Clark's consumer-health portfolio
Kimberly-Clark announced the acquisition in November 2025. The transaction would add Kenvue's portfolio of consumer-health and personal-care brands, including Listerine, Aveeno and Neutrogena, to Kimberly-Clark's existing portfolio, which includes Kleenex and Huggies.
The deal is valued at approximately $40 billion. Kimberly-Clark's regulatory filings describe the consideration as a combination of shares and cash, with the final transaction value subject to changes in Kimberly-Clark's share price.
The companies expect the acquisition to close in the second half of 2026, subject to regulatory and other closing conditions.
Regulatory remedies emerge in other markets
The EU review comes as Kimberly-Clark and Kenvue address competition issues in other jurisdictions.
In Brazil, Kenvue agreed in August to sell its feminine-care business to Essity for $284 million. The transaction includes the Carefree, Sempre Livre and o.b. brands, as well as related manufacturing equipment. The sale remains subject to Brazilian regulatory approval and completion of the Kimberly-Clark-Kenvue transaction.
The Brazilian divestment is also relevant to the competition review of the Kimberly-Clark transaction: according to competition-law publication MLex, Kimberly-Clark and Kenvue are seeking Brazilian clearance without additional remedies, arguing that the Essity transaction removes the deal's only potential horizontal overlap in the country.
In Australia, the transaction was cleared earlier this month on condition that Kimberly-Clark divest Kenvue's Carefree and Stayfree period-care brands in the country.
The deal also received conditional approval in South Africa last month.
For Kimberly-Clark, the acquisition would broaden its exposure beyond its established hygiene categories into consumer health, skincare and other personal-care segments. Kenvue's European portfolio includes over-the-counter medicines, skin health and beauty products, baby care, feminine hygiene and essential health products such as mouthwash and toothpaste.
What happens next
The European Commission's next step is expected to be the formal communication of its competition concerns to Kimberly-Clark. The company could then offer concessions before the September 29 deadline in an effort to secure clearance without a more extensive investigation.
If the concerns cannot be resolved during the preliminary review, the Commission could proceed to a more detailed investigation lasting up to four months.
Reuters has reported that the concessions being prepared could include asset sales, but neither the assets potentially involved, nor the specific EU competition concerns have been publicly identified.
Source: Reuters, September 14, 2026
