NEW YORK, Jan 10, 2026, 08:01 (ET) — Market closed
- Kenvue shares closed Friday 0.9% lower, finishing at $16.83
- The OCC memo highlighted the shareholder vote set for Jan. 29 and the related option adjustment connected to the Kimberly-Clark deal
- Traders are eyeing the deal spread, macro data, and fresh filings ahead of the vote
Kenvue Inc (KVUE) shares slipped 0.9% on Friday, ending at $16.83 after trading between $16.75 and $17.05, retracing some of Thursday’s gains. The Options Clearing Corporation highlighted a shareholder vote set for Jan. 29 on Kenvue’s proposed merger with Kimberly-Clark and detailed a planned adjustment to KVUE options once the deal closes. They warned terms might shift as new details emerge. (InfoMemo)
Markets closed over the weekend, but KVUE is once again behaving like a deal stock. The key date ahead is the Jan. 29 vote, while merger-arbitrage funds keep a close eye on the “deal spread”—the difference between Kenvue’s current share price and the value suggested by the offer.
Based on Kimberly-Clark’s Friday close at $97.92, the stock-and-cash deal values each Kenvue share at about $17.82. That puts KVUE roughly 6% under this benchmark. The gap will fluctuate with Kimberly-Clark’s share price and investor expectations around how straightforward the second-half 2026 closing will be.
Kenvue has been steadily updating filings. In a recent Form 425 — used for merger communications — the company informed employees that Kimberly-Clark will keep current salary and target bonus levels steady for at least a year post-close. It also doesn’t expect any benefit changes to kick in during 2026, assuming the deal closes in the second half of the year. The filing noted eligible employees will get March 2026 long-term incentive awards as restricted stock units, or RSUs.
In November, Kimberly-Clark struck a deal to acquire Kenvue in a cash-and-stock transaction that values the company at roughly $48.7 billion enterprise value. The bid offers $3.50 in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share. Post-merger, Kenvue shareholders would own around 46% of the combined entity. Kenvue Chair Larry Merlo described the deal as delivering “significant upfront value.” The transaction is expected to close in the second half of 2026, pending regulatory and shareholder approvals. (Kenvue Investors)
Earnings remain in the background but could return quickly if the deal timeline extends. Kenvue, spun off from Johnson & Johnson in 2023, is set to report quarterly results soon. Analysts expect adjusted earnings of 22 cents per share, according to Barchart. Investors will watch closely for changes in pricing, marketing expenses, and margins as the merger talks continue.
Macro factors could shake up the trade since the offer includes stock. The U.S. consumer price index for December drops Jan. 13 at 8:30 a.m. ET, with the Fed’s next meeting set for Jan. 27-28. A hotter inflation number or a shift in rate expectations could rattle Kimberly-Clark—and that directly impacts how the market values Kenvue in the deal.
The numbers add up only if the deal sails through. If the vote fails, regulators get tougher, or Kimberly-Clark’s stock takes a hit, Kenvue could be forced to stand on its own again—potentially testing the patience of investors who bought in expecting a quick exit.
Traders are back Monday, eyeing if KVUE can stay above Friday’s $16.75 low and if the discount to the offer tightens. Kimberly-Clark plans to release its fourth-quarter and full-year 2025 results on Jan. 27, with the Kenvue shareholder vote following two days later. (Barchart)
