WELLINGTON, March 4, 2026, 23:37 (NZDT)
- Kimberly-Clark’s bid to buy Kenvue is now under the microscope, as New Zealand’s Commerce Commission opens a competition review.
- Kimberly-Clark is looking to address the overlap by offloading Kenvue’s feminine hygiene business in Australia and New Zealand.
- Kimberly-Clark fell about 4.7% before the U.S. market got underway.
New Zealand’s Commerce Commission has kicked off its competition probe into Kimberly-Clark Corporation’s planned takeover of Kenvue Inc, opening the floor for public comment through March 17. The regulator says it’s targeting an April 28 decision, with a key focus on whether Kimberly-Clark’s proposed divestment is enough to resolve any competition concerns. 1
Why now? Regulatory approval is still pending in regions where the two firms overlap. That review might drag on, force divestitures, or, if authorities see a risk to competition or consumer prices, stop the merger cold.
The Commission is probing whether the merger would “substantially lessen competition”—in other words, would the new entity have enough grip to raise prices or reduce quality without losing business? That’s the benchmark regulators are required to apply.
The Commission noted in a preliminary issues statement that it received Kimberly-Clark’s application on Feb. 27 and is still early in its probe. Kimberly-Clark sells U by Kotex in New Zealand, while Kenvue offers Stayfree and Carefree. Investigators are weighing possible risks: whether divestment could work and if practices like bundling or “tying” could put rivals at a disadvantage.
Kimberly-Clark slid 4.7% to $104.64 in premarket trading. Kenvue shares fell too, down 3.9% at $18.15, according to market data.
Back in November, Kimberly-Clark said it would acquire Kenvue through a combination of cash and stock, valuing the company at about $48.7 billion based on Kimberly-Clark’s closing price from Oct. 31, 2025. “We are excited to bring together two iconic companies to create a global health and wellness leader,” CEO Mike Hsu said during the announcement. 2
Investor and analyst worries are piling up around Kenvue. Legal challenges linked to Tylenol and talc-based baby powder have put the company under a cloud. When the deal was announced, TD Cowen’s Robert Moskow told Reuters the Tylenol lawsuit risk was “hard to quantify.” 3
New Zealand’s review brings new uncertainty—questions swirling over whether the divestment plan is solid, and if a qualified buyer can realistically be secured before time runs out. The Commission isn’t mincing words: if the specifics don’t measure up, it’s ready to delay its verdict. 4
Scrutiny is mounting in South Africa’s feminine hygiene market. The national consumer watchdog kicked off an investigation this week into sanitary pad makers, including the local Kimberly-Clark unit, after a university study flagged hormone-disrupting chemicals in some menstrual products sold locally. 5
The Commerce Commission has started contacting market participants for its review. Submissions are due March 17. A provisional decision should arrive by April 28.
