Commission clears merger of Kimberly-Clark and Kenvue subject to divestment

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 says: “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.”

A public version of the written reasons for the decision, including the divestment undertaking, will be available on the Commission’s case register in due course.

Background

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market. In giving clearance, the Commission may accept a written undertaking from the applicant to dispose of assets or shares.