Kimberly-Clark, the maker of Huggies and Kleenex, has agreed to acquire Kenvue, the Johnson & Johnson spinoff behind Tylenol, Band-Aid, Aveeno and Listerine, in a cash-and-stock deal valuing Kenvue at about $48.7 billion. The combination would create a consumer-health powerhouse with roughly $32 billion in annual revenue. Terms give Kenvue shareholders $3.50 in cash plus 0.14625 shares of Kimberly-Clark for each KVUE share (implying $21.01 per KVUE at the reference price), with the merged ownership split about 54% Kimberly-Clark holders / 46% Kenvue holders. Management projects roughly $1.9–$2.1 billion in annual cost synergies over three years; Kimberly-Clark CEO Mike Hsu is slated to lead the combined company, which plans to keep significant operations at Kenvue sites while being headquartered in Irving, Texas. The deal is expected to close in the second half of 2026, pending approvals. (AP News)

For Kenvue stockholders, the math is straightforward: your exit value floats with Kimberly-Clark’s share price because part of the consideration is stock. Using the reference exchange, the offer carries a ~46% premium to Kenvue’s last close before the news. If KMB trades lower into closing, the effective value to KVUE holders falls; if KMB recovers, it rises. There’s also a typical “deal-risk” spread until regulatory and shareholder approvals arrive. Tax treatment will depend on individual circumstances and jurisdiction, as the mix of cash and stock can trigger taxable gains; investors should confirm specifics with an advisor. Strategically, KVUE holders swap a pure-play OTC/consumer-health profile for a broader tissue and personal-care platform that management argues can wring out procurement, distribution, and overhead efficiencies—offset by integration execution risk and Kenvue’s well-known litigation overhangs. (Investors.com)

For Kimberly-Clark shareholders, the near-term picture is more mixed. The company is taking on a very large target and financing with cash and new shares, which raises leverage and dilutes existing holders; integration costs are front-loaded while synergies phase in over several years. That usually pressures the acquirer’s stock even if the industrial logic is sound. The longer-term case is that adding OTC health staples like Tylenol, Band-Aid and Listerine deepens the portfolio’s brand moat, increases shelf power with retailers, and broadens emerging-market distribution—benefits that could improve margins and growth if management executes. Analysts are split between calling it an aggressive but logical scale play and warning about litigation and balance-sheet risk. (Reuters)

Early market reaction reflects that split: Kenvue shares jumped on the premium while Kimberly-Clark fell sharply on deal-cost and dilution concerns. Live pricing at the time of writing is below; use these charts to gauge intraday moves and follow the spread between the offer value and KVUE’s trading price. (Yahoo Finance)

Bottom line: this is a classic “premium pop for the seller, skepticism for the buyer” setup on day one. If you hold KVUE, your path from here mostly hinges on the acquirer’s stock and closing risk; if you hold KMB, the question is whether the multi-year synergy and brand-portfolio upside offsets leverage, integration, and litigation risk well enough to justify today’s drawdown. (AP News)