Kimberly-Clark Corp. is reportedly preparing concessions to address European Union antitrust concerns over its proposed $40 billion acquisition of Tylenol maker Kenvue Inc.

European Regulatory Scrutiny

The European Commission is expected to formally outline its competition concerns to Kimberly-Clark this week, Reuters reported, citing people familiar with the matter.

Kimberly-Clark could offer concessions before the EU's preliminary review ends Sept. 29. Otherwise, regulators could open an in-depth investigation lasting about four months.

The potential remedies could include asset sales aimed at easing competition concerns and securing EU approval for the $40 billion transaction.

The deal, announced in November 2025, would bring Kenvue brands such as Neutrogena, Aveeno and Listerine into Kimberly-Clark's portfolio, which includes Kleenex and Huggies.

Australia Required Asset Sales

Australia has already imposed conditions on the transaction.

Earlier this month, the Australian Competition and Consumer Commission approved the acquisition on the condition that Kenvue's Stayfree and Carefree period-care brands are sold to an approved buyer.

Before the proposed deal, Kimberly-Clark and Kenvue were two of Australia's three major period-care suppliers. Essity, which owns the Libra and TOM Organic brands, was the third.

The regulator said the divestiture would preserve competition that could otherwise be lost through the combination.