Kimberly-Clark's acquisition of Kenvue approved subject to sale of Carefree and Stayfree brands

The ACCC has approved Kimberly-Clark Corporation's acquisition of Kenvue Inc, part of a global transaction reported at around 40 billion US dollars, on condition that Kimberly-Clark divests Kenvue's Carefree and Stayfree period care brands in Australia to a purchaser approved by the ACCC. The decision, announced on 2 September 2026, is the fourth acquisition cleared with conditions under Australia's current merger control regime.

Kimberly-Clark and Kenvue are two of the three major suppliers of period care products in Australia, with Kimberly-Clark trading under the U by Kotex brand and Kenvue under Carefree and Stayfree, alongside Essity, which supplies Libra and TOM Organic. ACCC Commissioner Dr Philip Williams said the ACCC considered that without divestiture of the Carefree and Stayfree brands, the acquisition could substantially lessen competition in the supply of period care products in Australia by reducing the number of major suppliers from three to two. The divestiture condition is intended to preserve an independent competitor in that market and maintain the level of competition that would otherwise be lost through the acquisition. A similar divestment undertaking was required by New Zealand's Commerce Commission in respect of the same brands in that market.

Dr Williams said the outcome demonstrates that the merger regime can address competition concerns flexibly while still allowing transactions to proceed without undue delay. For businesses considering acquisitions in concentrated Australian markets, the decision illustrates that the ACCC continues to use structural remedies such as brand or business divestiture as a tool for resolving competition concerns, rather than limiting its response to either unconditional clearance or outright prohibition.