Israel Conditions Kimberly-Clark–Kenvue Merger on Feminine Hygiene Business Sale

Israel's competition commissioner has approved Kimberly-Clark's acquisition of Kenvue on condition that Kimberly-Clark sell its entire Israeli feminine hygiene business. The conditional approval was reported on Sunday, November 1. The buyer must be an independent third party approved by the commissioner, and a sale agreement must be signed before the international merger closes. The Competition Authority's examination found that the companies are two of the three largest competitors in Israel's feminine hygiene market, with significant positions in tampons. Combining their operations without a remedy would leave only two major competitors. The authority was concerned that the resulting reduction in competition could lead to higher prices for consumers. Kimberly-Clark markets disposable feminine hygiene products in Israel under the Kotex and Lily brands. Kenvue's products include o.b. tampons and Carefree pantyliners, which reach the Israeli market through distributors. Those businesses are the focus of the competition concerns behind the required sale. Additional conditions are intended to preserve the purchaser's ability to compete independently. The next required step is an agreement with a purchaser that satisfies the commissioner's requirements before completion of the global transaction. Kimberly-Clark also operates in baby care, adult incontinence and paper products in Israel; the divestiture condition concerns feminine hygiene. The approval does not mean that either the merger or the required sale has been completed.