The Commerce Commission has given clearance to Kimberly-Clark Corporation to acquire 100 percent of the shares in Kenvue Inc. as part of a global transaction, subject to an undertaking to divest Kenvue’s feminine hygiene business in New Zealand and Australia.
Kimberly-Clark and Kenvue are global providers of a range of personal and healthcare products. In New Zealand, they compete to supply feminine hygiene products; specifically sanitary pads, tampons and liners under Kimberly-Clark’s ‘U by Kotex’ brand and Kenvue’s ‘Stayfree’ and ‘Carefree’ brands.
Under the divestment undertaking, Kimberly-Clark must sell the Kenvue feminine hygiene business to a purchaser to be approved by the Commission within a specified timeframe.
Commission Deputy Chair Anne Callinan said that without the divestment, the proposed transaction would result in the merger of two significant suppliers of feminine hygiene products in New Zealand – Kenvue and Kimberly-Clark.
However, the sale of the Kenvue feminine hygiene business to a suitable third-party purchaser will ensure that the well-established Carefree and Stayfree brands continue to compete under separate ownership.
“Given this, the Commission is satisfied that the proposed transaction is unlikely to substantially lessen competition in any relevant market.”
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