Kimberly-Clark has recently revealed its plans to acquire Kenvue, the maker of Tylenol, in $48.7 billion cash-and-stock deal.
After the announcement, Kenvue's stock price jumped 18% before the market opened on Monday while Kimberly-Clark's stock fell by 14%, as per CNBC.
Together, the new company will own famous brands like Huggies, Kleenex, Band-Aid and Tylenol.
Not only this, the deal, which is planned to be completed sometime between July and December 2026 is also one of the largest business transactions on Wall Street this year.
Kimberly-Clark Chairman and CEO Mike Hsu said in a statement that the companies share a “commitment to developing science and technology to provide extraordinary care.”
He added, “Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster. We have built the foundation and this transaction is a powerful next step in our journey.”
After the deal is finalized, three people from Kenvue's leadership will join imberly-Clark’s board and Hsu will remain the company's CEO.
The deal comes just weeks after President Donald Trump falsely claimed that taking acetaminophen, which is the main ingredient in Tylenol during pregnancy could increase the risk of autism.
His remarks caused Kenvue's stock price to drop sharply. The company also denied these claims while many health experts have sad that Tylenol is usually the safest and sometimes the only medicine pregnant women can use for pain or fever.
