Kimberly-Clark's $40B purchase of Kenvue wins China antitrust approval

Kimberly-Clark (KMB) and Clorox (CLX) reported earnings, highlighting their respective overhauls. KMB beat EPS estimates with $2.12, but faces China-related challenges. CLX saw gross margin decline due to higher costs. Both have high dividend payout ratios, with CLX offering a higher yield but carrying more debt. KMB's stock is up 10.28% YTD, while CLX is down 11.85%.

China's State Administration for Market Regulation unconditionally cleared 14 deals between Oct. 5-11, including Kimberly-Clark's acquisition of Kenvue and ITOCHU's stake purchase in Dentsu Soken, both approved on Oct. 10.

Kimberly-Clark priced a $4.9B senior notes offering to finance its Kenvue acquisition. The offering includes five tranches with varying maturities and interest rates. Proceeds will fund the cash portion of the acquisition, with any remaining used for general corporate purposes. The notes offering is not contingent on the acquisition's completion, but includes a mandatory redemption provision if the deal does not close. The acquisition is expected to close in Q4 2026.

Kimberly-Clark (KMB) received China's antitrust approval for its $40B acquisition of Kenvue (KVUE), following clearances from Brazil, the EU, and Australia. KMB's dividend yield is 4.78% with an 86% payout ratio, and its stock is 7.8% undervalued per GF Value™. The company's GF Score™ is 69/100, indicating solid profitability but weaker growth and momentum.

Kimberly-Clark priced a $4.9B senior notes offering in five tranches, maturing 2028-2036, to fund its Kenvue acquisition. The offering is unconditional but includes a mandatory redemption clause if the deal fails. Proceeds will also cover related fees and general corporate purposes. The acquisition is expected to close in Q4 2026.

Kimberly-Clark priced a $4.9B offering of senior unsecured notes in five tranches to fund its Kenvue acquisition. The notes, due between 2028 and 2036, will be redeemed if the deal doesn't close by the outside date. Proceeds will cover cash consideration and fees for the acquisition.