New York, Jan 29, 2026, 11:20 EST — Regular session underway.
- Kenvue shares barely moved following shareholder approval of Kimberly-Clark’s acquisition plan
- The deal requires regulatory approval and is expected to close in the second half of 2026
- KVUE is trading under the offer’s implied value, putting merger-arb spreads in the spotlight
Kenvue Inc shares edged up roughly 0.1% to $17.35 in late morning trading Thursday, following investor approval of the proposals required for Kimberly-Clark’s acquisition of the consumer health firm.
This vote is crucial—it clears the largest procedural barrier to a deal that’s made KVUE a merger-arbitrage play. When takeover talks drive a stock, traders typically value it based on the offer price plus the likelihood and timing of the deal closing.
Regulatory filings reveal that Kenvue shareholders will get $3.50 in cash plus 0.14625 Kimberly-Clark shares for every Kenvue share they hold. This exchange ratio ties KVUE’s value closely to KMB’s stock performance. Using Kimberly-Clark’s most recent price, the total deal values each Kenvue share at about $18.07, with a spread that factors in timing and the risk the deal might not close.
Preliminary vote counts show roughly 96% of shares at Kimberly-Clark’s meeting approved issuing shares for the deal. At Kenvue, about 99% of votes cast supported the merger agreement, covering around 77% of its outstanding shares. Kimberly-Clark CEO Mike Hsu called the approval an “exciting milestone.” Kenvue CEO Kirk Perry added that combining portfolios will let the companies “accelerate innovation.” (Kenvue)
The companies said final vote results remain subject to certification and will be disclosed in separate Form 8-K filings. They confirmed the deal is still on track to close in the second half of 2026, contingent on regulatory approvals and other closing conditions. (PR Newswire)
Kimberly-Clark secured shareholder approval as it pushes a shift toward consumer health. On Tuesday, the company surpassed quarterly profit expectations, helped by cost controls and steady demand for essentials. It called the Kenvue deal a crucial part of this strategy. Morningstar analyst Erin Lash praised management’s emphasis on innovation and marketing over relying on promotions to boost sales. (Reuters)
Kenvue announced capital returns a day earlier, setting a quarterly dividend of $0.2075 per share. The payout is scheduled for Feb. 25 to shareholders recorded by Feb. 11. (Kenvue Investor Relations)
At the moment, the stock feels less like an independent consumer-health play and more like a deal stub. The cash component provides a cushion, but the equity stake leaves Kenvue holders vulnerable to Kimberly-Clark’s market moves — and the timeline for the deal’s closure.
The risk here is the deal could stall or face regulatory hurdles, pushing the spread wider. A sudden move in KMB’s stock, a more stringent antitrust review, or shifts in financing terms might disrupt the calculations and send KVUE trading further below the implied consideration.
Next on the docket: traders await the certified vote counts in the expected 8-K filings, watching closely for clues on how fast regulators will move. Meanwhile, income-focused investors have their eyes on the Feb. 11 dividend record date.
