New York, Jan 27, 2026, 10:52 EST — Regular session
Shares of Kenvue Inc (KVUE) edged up 0.2% to $17.68 in early Tuesday trading, following a quarterly profit beat from potential acquirer Kimberly-Clark (KMB). Kimberly-Clark also reaffirmed its focus on expanding in consumer health. The company’s shares gained 0.7%, reaching $101.89. (Reuters)
The move is crucial given the tight timeline. Shareholders will vote on Kimberly-Clark’s $40 billion bid for Kenvue on Jan. 29, following ISS’s recommendation to back the deal earlier this month. (Reuters)
Kenvue shareholders will get $3.50 in cash plus 0.14625 Kimberly-Clark shares for each Kenvue share, the companies confirmed at the deal’s announcement. The transaction, subject to shareholder and regulatory sign-off, is slated to close in the second half of 2026. Kimberly-Clark has secured financing and plans to cover the cash portion with existing cash, new debt, and proceeds from its upcoming International Family Care and Professional business deal. (Kenvue)
That situation has pushed Kenvue into merger arbitrage territory — investors snap up the target and sometimes hedge the acquirer, betting on the difference between the offer price and the trading price of the target. When that spread widens, it typically signals the market is factoring in higher risks of the deal faltering, shrinking, or falling through.
Kimberly-Clark CEO Mike Hsu described the Kenvue deal on Tuesday as “a powerful next step” in the company’s ongoing transformation, adding that integration planning is underway. The company also noted that funds from its IFP transaction are intended to support the acquisition. (PR Newswire)
Shareholder meetings are set for Thursday morning and will take place virtually. Voting instructions must be submitted before the session, according to a proxy filing. (SEC)
Deal risk remains a factor. Kenvue has been hit with lawsuits and regulatory scrutiny over legacy products, sparking debate among investors about the impact of these liabilities on the merged entity — and if they might delay the timeline. (Reuters)
Thursday’s vote is the immediate focus for investors. Once that’s settled, the spotlight will turn to fresh updates on litigation, financing structure, and how quickly regulators are moving — the key factors that will determine if Kenvue stays in deal mode or reverts to trading on its core fundamentals.
