NEW YORK, Jan 21, 2026, 09:46 EST — Regular session
- KVUE held steady in early trading while U.S. stocks attempted a rebound from Tuesday’s sell-off
- Attention centers on the upcoming Kimberly-Clark acquisition and the lead-up to the shareholder vote
- Proxy-related lawsuits and risks tied to product litigation continue to be the biggest unknowns
Kenvue Inc shares edged down roughly 0.1% to $17.58 in early Wednesday trading, while Kimberly-Clark, the potential buyer, held steady at $101.44.
The modest uptick followed Wall Street’s biggest drop in three months, as the market opened higher while investors digested President Donald Trump’s comments at the World Economic Forum in Davos. 1
For Kenvue, the immediate focus isn’t so much on toothpaste or painkillers, but rather on deal dynamics. Activist investors are increasingly pushing boards to consider sales and breakups, and Kenvue shows how that pressure can trigger a buyer’s move. “M&A is a big theme these days,” Amy Lissauer, Bank of America’s global head of activism and raid defense, told Reuters. 2
Kimberly-Clark struck a deal in November to acquire the maker of Tylenol and Band-Aid for over $40 billion, combining cash and stock. According to Reuters, Kenvue shareholders will get $3.50 per share in cash plus 0.15 Kimberly-Clark shares for every Kenvue share they own. 3
The path to closing isn’t straightforward. In a Form 8-K — a report companies file to share material events — Kenvue detailed multiple shareholder lawsuits and demand letters pushing for more disclosure before the vote. The company also said it’s updating its proxy materials to help avoid delays. The board stood firm, urging shareholders to vote “FOR” the merger proposals.
Kenvue, a consumer health firm, markets brands like Tylenol, Neutrogena, Listerine, Johnson’s, Band-Aid, Aveeno, Zyrtec, and Nicorette, Reuters reports. 4
The broader market still holds sway. Volatility surged again this week, pushing investors toward defensive stocks when jitters hit the market.
The next major event for the stock is coming up soon. Shareholders will vote on the deal January 29. Proxy adviser ISS has recommended a yes vote, stating: “On balance, support for the transaction is warranted.” However, they did highlight concerns around ongoing litigation and the market’s chilly response to the deal. 5
