US Stock Market Move | 487 billion dollar transaction triggers a huge stock price shake-up: "acquirer" Kimberly-Clark Corporation (KMB.US) plunges 15%, while Kenvue (KVUE) surges 20%

Kimberly-Clark Corporation (KMB.US) announced a deal to acquire all outstanding shares of Kenvue (KVUE), the maker of Teno, in a cash and stock transaction. Under the agreement unanimously approved by both boards of directors, Kenvue shareholders will receive $3.50 in cash and 0.14625 shares of Kimberly-Clark Corporation stock for each share, with the transaction valued at $21.01 per share. Before the market opened on Monday, Kimberly-Clark Corporation's stock price fell by over 15%, while Kenvue rose by over 20%. The deal is expected to be completed in the second half of 2026, subject to shareholder and regulatory approval. Based on the closing price of Kimberly-Clark Corporation common stock on October 31, 2025, Kenvue's enterprise value is approximately $48.7 billion. The transaction is expected to bring value growth to Kenvue shareholders, with an initial cash consideration of $6.8 billion. Mike Hsu will serve as Chairman and CEO of the combined company. Upon completion of the merger, three Kenvue board members will join the board of Kimberly-Clark Corporation. Hsu stated, "We are excited to merge these two iconic companies to create a global leader in the hygiene and health industry." The combined company will continue to maintain its headquarters in Irving, Texas, and maintain a significant business presence in Kenvue's regions. The combined company is forecast to achieve approximately $32 billion in annual net revenue in 2025, with adjusted EBITDA of around $7 billion. The two companies expect to realize an additional profit of approximately $1.9 billion from cost synergies and $500 million in revenue synergies, but this income will be offset by $300 million in reinvestment. Cost savings should be achieved within three years after the transaction is completed, while revenue growth is expected within four years. To achieve these synergies, the company will need to invest approximately $2.5 billion in cash costs in the first two years after the transaction is completed. Kimberly-Clark Corporation and Kenvue will hold a joint conference call and webcast at 8:00 AM Eastern Time on Monday (9:00 PM Beijing Time) to discuss the transaction.