The Commerce Commission of New Zealand has granted clearance for Kimberly-Clark Corporation to acquire 100% of Kenvue Inc., but with a crucial condition. The approval is subject to Kimberly-Clark divesting Kenvue’s feminine hygiene business in both New Zealand and Australia.

Kimberly-Clark and Kenvue are recognized global suppliers of personal and healthcare products. In the New Zealand market, they compete directly in the feminine hygiene sector, offering products such as sanitary pads, tampons, and liners. Kimberly-Clark markets its products under the 'U by Kotex' brand, while Kenvue offers 'Stayfree' and 'Carefree' brands.

The Commission has mandated that Kimberly-Clark must sell Kenvue’s feminine hygiene business to a buyer approved by the Commission within a specified timeframe. This divestment is essential to maintain competition in the market, as the merger would otherwise combine two major suppliers of feminine hygiene products.

Deputy Chair Anne Callinan emphasized that without the divestment, the merger would significantly reduce competition in the feminine hygiene market. However, the sale to a suitable third-party purchaser will allow the established Carefree and Stayfree brands to continue competing independently. The Commission is confident that this arrangement will prevent any substantial lessening of competition.

A public version of the Commission's written decision, including details of the divestment undertaking, will be made available on their case register in the near future.