The ACCC has approved Kimberly-Clark Corporation’s proposal to acquire Kenvue Inc., subject to conditions that Kimberly-Clark divest Kenvue’s Carefree and Stayfree period care brands in Australia to a purchaser approved by the ACCC.
Kimberly-Clark and Kenvue both supply period care products in Australia. Kimberly-Clark supplies tampons, sanitary pads and panty liners under the U by Kotex brand, while Kenvue supplies these products under the Carefree and Stayfree brands.
“We consider that without the divestiture of the Carefree and Stayfree brands, the acquisition could substantially lessen competition in the supply of period care products in Australia,” ACCC Commissioner Dr Philip Williams said.
Kimberly-Clark and Kenvue are two of the three major suppliers of period care products in Australia. The third, Essity, supplies the Libra and TOM Organic brands. Without the divestiture conditions, Kimberly-Clark’s acquisition of Kenvue would have reduced the number of major suppliers from three to two.
“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,” Dr Williams said.
“Outcomes such as this demonstrate that the new merger regime can flexibly address competition concerns while still allowing transactions to occur promptly.”
This is the fourth acquisition that has been cleared with conditions under Australia’s new merger control regime. The regime provides the ACCC with greater oversight of acquisitions that raise potential competition concerns.
More information, including the Phase 1 Determination and undertaking, is available on the ACCC’s Acquisitions Register: Kimberly-Clark Corporation – Kenvue Inc.
Background
Kimberly-Clark and Kenvue are global corporations which produce and sell consumer and personal care products. Kimberly-Clark’s brands include Huggies, Kleenex and Viva. Kenvue’s brands include Band-Aid, Zyrtec and Aveeno.
In Australia, Kimberly-Clark and Kenvue overlap in the wholesale supply of period care products. Kimberly-Clark’s U by Kotex and Kenvue’s Carefree and Stayfree brands are supplied to supermarkets and other grocery stores, pharmacy wholesalers, discount stores, convenience stores and online retailers.
Kimberly-Clark notified its proposed acquisition of Kenvue to the ACCC on 28 July 2026. At the time of notification, in recognition of the competition concerns presented by the overlap in period care products, Kimberly-Clark offered an undertaking that provided for the divestiture of Kenvue’s period care product business in Australia and New Zealand.
Merger control regime
Since 1 January 2026, it has been mandatory for businesses to notify the ACCC of any acquisition that meets the notification thresholds set by the Minister. They must wait for ACCC approval before they can proceed.
Once notified, the notification is listed on the ACCC’s Acquisitions Register and stakeholder consultation is invited. During its Phase 1 assessment, the ACCC must decide within 15 to 30 business days, subject to any extensions, whether to approve the acquisition or open an in-depth Phase 2 review.
For the purpose of approving the acquisition with conditions, the ACCC must be satisfied that, disregarding any conditions the ACCC could include, the acquisition, if put into effect, could, in all the circumstances, have the effect of substantially lessening competition in any market.
More guidance on the new merger regime can be found on the ACCC’s website: Guidance documents for the merger control regime.
