EU approves Kimberly-Clark's $40 billion Kenvue acquisition

EU Approves Kimberly-Clark’s $40 Billion Kenvue Acquisition After Concessions

European Commission Approval and Antitrust Concessions

Overview of the Acquisition

BRUSSELS, Oct 13 (Reuters) - The European Commission has approved Kimberly-Clark's $40 billion acquisition of Tylenol maker Kenvue after the maker of Kleenex tissues and Huggies diapers offered concessions to address EU antitrust concerns.

Details of the Concessions

Kimberly-Clark offered to sell all its tampon and other feminine hygiene brands in the European Economic Area, the EU competition enforcer said in a statement.

Brands Included in the Divestment

"The brands covered by the divestment are Kotex (including the Lidie sub-brand), Camelia and Record," the Commission said.

EU Competition Concerns

The Commission had concerns that the transaction would reduce competition in the tampon market, particularly in the Czech Republic, Estonia and Slovakia, because it would result in the removal of an important supplier.

Sale of Assets and Suitable Purchaser

Dilek Gida Uretim as the Buyer

Turkey-based Dilek Gida Uretim, a distributor of leading consumer good brands, agreed to buy the assets Kimberly-Clark has committed to sell, the Commission said, adding that it had approved that transaction, too.

Commission’s Assessment of Dilek Gida Uretim

"Dilek is a suitable purchaser given that it has, among others, the financial resources to maintain and develop the divested business, as well as the expertise to operate it effectively," the Commission said.

Reporting

(Reporting by Charlotte Van Campenhout and Inti LandauroEditing by David Goodman)