Kimberly-Clark is laying down $40bn to buy Kenvue in a massive deal that has puzzled some investors, as the maker of Tylenol struggles with weak sales, lawsuits and White House attacks linking its painkiller to autism.Shares of Kimberly-Clark dropped sharply after the Monday announcement as stockholders scrutinised the 46 percent premium being paid for the former Johnson & Johnson unit that has had a turbulent year.Recommended Stories list of 4 itemsend of listKenvue ousted its CEO in July, and has been under fire from United States President Donald Trump over unproven claims that Tylenol use during pregnancy can cause autism in children.Kenvue shares, which had dropped sharply since Trump’s comments, jumped 17.5 percent on Monday. Many investors have been awaiting a sale of all or parts of the company for months, following activist pressure.Jay Woods, chief market strategist at Freedom Capital Markets, said the market reaction suggests some investors believe Kimberly-Clark “may be buying damaged goods”.Despite the concerns, Kimberly-Clark forecast $2.1bn in annual cost savings from the deal, with the addition of Kenvue’s vast portfolio of brands from Listerine mouthwash to skincare names like Aveeno and Neutrogena expected to bring in annual revenues of roughly $32bn for the combined company.“Both companies sit side by side on store shelves, so the scale and distribution logic make sense even if the Tylenol overhang remains a shadow any buyer would …
