New York, January 9, 2026, 21:05 EST — Market closed.
- OCC detailed a planned options adjustment related to Kenvue’s upcoming merger with Kimberly-Clark, set for a shareholder vote on Jan. 29
- Kenvue shares closed at $16.83, slipping roughly 1% after the U.S. market session ended
- Deal terms suggest Kenvue’s value will continue to mirror Kimberly-Clark’s stock ahead of the vote
The Options Clearing Corporation on Friday announced a planned adjustment for Kenvue Inc. options before the Jan. 29 shareholder vote on the company’s proposed merger with Kimberly-Clark. Kenvue shares last changed hands at $16.83, slipping roughly 1% after U.S. markets closed. (InfoMemo)
Why it matters now: Kenvue (KVUE) has become a merger-arbitrage play, with investors valuing the stock based on the offer price and the likelihood the deal goes through. The OCC memo dives into that trade but also clarifies what options contracts would actually deliver if the merger closes — Kimberly-Clark shares and cash, not Kenvue stock.
The OCC’s “new deliverable” is straightforward: 14 Kimberly-Clark (KMB) shares plus $350 in cash for every standard 100-share options contract, with cash covering any fractional shares. Given Kimberly-Clark’s last price of $97.92, this puts the value at about $17.82 per Kenvue share—approximately $1 below Kenvue’s last trade.
A filing this week revealed Kenvue informed employees that Kimberly-Clark will keep current salary and target bonus levels steady for at least a year after the deal closes. The company also indicated it doesn’t expect any benefit changes to kick in during 2026, assuming the transaction wraps up in the second half of the year, “as currently anticipated.”
Kimberly-Clark and Kenvue revealed their deal in November, describing it as a merger of consumer health and personal care businesses. “We are excited to bring together two iconic companies to create a global health and wellness leader,” Kimberly-Clark CEO Mike Hsu said then. (Kenvue)
Up next, traders have Kimberly-Clark’s earnings set for Jan. 27 on their radar. The report could shake up the stock piece tied to Kenvue and send the merger spread shifting fast. Kimberly-Clark said it expects to release results around 6:30 a.m. EST.
But the spread isn’t guaranteed to tighten. The deal still requires shareholder approval and antitrust sign-offs. An earlier SEC filing sets a deadline in late 2026, with a $1.136 billion termination fee kicking in under some break conditions.
Macro data might stir things up before traders return Monday. The U.S. consumer-price index for December is set to drop on Jan. 13. Meanwhile, a University of Michigan survey revealed consumer sentiment nudged higher in early January but remains pressured by inflation concerns. Kenvue is scheduled to report earnings on Feb. 5, with its stock trading between $14.02 and $25.17 over the past year. (Barchart)
Jan. 29 is the key date for Kenvue shareholders to vote on the merger. If it clears that hurdle, the focus shifts to timing — and how the spread moves as the companies approach the actual closing window.
