Israel Approves Kimberly-Clark Merger With Condition to Sell Kotex and Carefree Brands

Israel's Competition Authority has approved the international merger between Kimberly-Clark Corporation and Kenvue Inc., but with a significant condition: Kimberly-Clark must sell its feminine hygiene operations in Israel. The merger involves Kimberly-Clark acquiring full ownership of Kenvue.

Kimberly-Clark is a major player in Israel, offering products in baby care, adult incontinence, paper goods, and notably, feminine hygiene under the Kotex and Lily brands. Kenvue, whose products are imported to Israel, focuses on beauty and health items and is the global producer of OB tampons and Carefree panty liners.

The Competition Authority's review revealed that the merger, as initially proposed, posed a substantial risk to competition in the feminine hygiene market. Both Kimberly-Clark and Kenvue are among the top three competitors in this sector, and together they hold a significant share of the tampon market. Without the divestiture, the merger would have reduced the market to only two major players, potentially leading to increased prices for feminine hygiene products in Israel.

To address these concerns, the authority mandated that Kimberly-Clark sell its entire Israeli feminine hygiene business to an independent third party, subject to the authority's approval. This agreement with the buyer must be finalized before the merger is completed. The authority also imposed conditions to ensure the buyer's competitive viability and independence.

Similar merger reviews have taken place globally, with other countries, including Europe, New Zealand, and Australia, also approving the merger contingent on the sale of feminine hygiene operations by one of the parties.