The Australian Competition and Consumer Commission (ACCC) has granted approval for Kimberly-Clark Corporation to acquire Kenvue Inc., but with specific conditions requiring the divestiture of Kenvue's Carefree and Stayfree period care brands in Australia. This decision aims to prevent a substantial lessening of competition in the supply of period care products.

Both Kimberly-Clark and Kenvue are significant players in the Australian market for period care products, with Kimberly-Clark offering products under the U by Kotex brand and Kenvue supplying Carefree and Stayfree. The ACCC highlighted that without the divestiture, the acquisition would reduce the number of major suppliers from three to two, which could harm competition.

ACCC Commissioner Dr. Philip Williams emphasized that the divestiture would ensure the presence of an independent competitor in the market, thereby preserving competition that would otherwise be diminished by the acquisition. This approval marks the fourth acquisition cleared with conditions under Australia’s new merger control regime, which allows the ACCC to address competition concerns while facilitating timely transactions.

Kimberly-Clark notified the ACCC of its proposed acquisition on July 28, 2026, and offered to divest Kenvue’s period care product business in response to the competition concerns raised. The new merger control regime, effective from January 1, 2026, mandates businesses to notify the ACCC of acquisitions that meet specific thresholds and await approval before proceeding.