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Kleenex and Huggies maker Kimberly-Clark unveiled plans to buy Kenvue, the embattled consumer health conglomerate behind Tylenol, in a landmark deal for more than $40bn.

The blockbuster takeover comes weeks after Donald Trump claimed Tylenol heightens the risk of autism in children when it is used by pregnant women, an assertion hotly contested by scientists and contradicted by studies.

The high-profile claims compounded months of struggles for Kenvue, which ousted its CEO in July and endured sharp stock market declines.

Kenvue, which also makes Listerine mouthwash, Neutrogena skincare products and Johnson’s baby oil, was spun out of Johnson & Johnson two years ago. Its shares jumped 17% on Monday morning, while Kimberly-Clark dropped 12% in New York.

“We are excited to bring together two iconic companies to create a global health and wellness leader,” Mike Hsu, Kimberly-Clark chairman and CEO, said in a statement. Larry Merlo, Kenvue’s chairman, claimed the deal would create a “uniquely positioned global leader in consumer health with a broader range of new growth opportunities ahead”.

Last week, the US health and human services secretary, Robert F Kennedy Jr, acknowledged that there was no evidence proving Tylenol causes autism, but repeated his view that signs of a link between the two were “very suggestive”.
Apart from certain looming litigations against Tylenol, Kenvue is also facing lawsuits over claims that its baby powder products caused cancer, dampening investor sentiment.

Still, Kimberly-Clark said it expected about $2.1bn in annual cost savings from the acquisition, which it expects to close in the second half of 2026.

Kenvue has tried to push back hard against the Trump administration’s claims about acetaminophen, usually branded as Tylenol.

“We believe independent, sound science clearly shows that taking acetaminophen does not cause autism,” the firm said in a statement following Trump and Kennedy’s first announcement in September. “We strongly disagree with allegations that it does and are deeply concerned about the health risks and confusion this poses for expecting mothers and parents.”

Alongside Monday’s announcement, Kenvue reported that its net sales fell 3.5% in the last quarter, and warned they would fall by the low single digits over the course of the year.

Kimberly-Clark, based in Irving, Texas, which owns toilet paper brands including Andrex and Cottonelle, is also navigating a consumer goods environment increasingly fraught with a more value-seeking shopper, forcing companies, including sector bellwether Procter & Gamble to invest in smaller pack sizes, and trim underperforming business units. Trump’s aggressive tariff strategy has also heightened challenges for the wider industry.

Kimberly-Clark sold a majority stake in its international tissue business to the Brazilian pulp maker Suzano as part of a restructuring, proceeds from which are expected to help the Kenvue buyout, the company said on Monday.

Reuters contributed reporting

The future of work is changing fast. Future Focus cuts through the noise with three trends each week that matter most to HR and business leaders. When everything else is in flux, stay focused with Future Focus.

Nvidia Becomes First Company Worth $5 Trillion (Forbes) 

What to Know: Nvidia became the first company to surpass a $5 trillion market capitalization as its shares hit new highs. The surge is anchored in strong artificial intelligence demand with a pipeline that includes an expected $500 billion in AI chip orders, plans to build seven U.S. government supercomputers, and a $1 billion stake in Nokia to collaborate on creating 6G.

Where to Focus: Compute power has become the strategic bottleneck for AI, and it’s becoming concentrated in a few hands. Leaders must now contend with heightened supplier dependency, pricing power, and geopolitical scrutiny. This elevates the need for strategic diversification in AI infrastructure and proactive workforce planning to secure the talent necessary for building and managing these complex systems. 

Seminar: Workforce Planning — The Future of Work

Millions at Risk as Government Shutdown Freezes Funds for a Critical Heating Program (Time)

What to Know: The federal shutdown is delaying the release of Low Income Home Energy Assistance Program (LIHEAP) funds, which help low‑income households pay heating and cooling bills, with some states pushing program openings into November and December. The slowdown comes amid surging energy prices, with heating costs projected to be up roughly 7.6% year over year. Additionally, administrative capacity has been reduced following the dismissal of the LIHEAP team at the U.S. Department of Health and Human Services earlier this year, meaning that families in need may face extended timelines for receiving support or services even after the government shutdown ends.

Where to Focus: As the government shutdown stalls crucial programs such as heating assistance, millions of families are facing compounding stressors. HR leaders should anticipate heightened employee anxiety, absenteeism, and financial strain among affected employees. Now is the time to communicate compassionately, remind staff of available support resources, and consider creating or replenishing emergency employee relief funds to help those navigating immediate hardship. 

China Dives In on the World’s First Wind-Powered Undersea Data Center (WIRED)

What to Know: Shanghai’s Lin‑gang Special Area completed phase one of an underwater data center rated at 24 MW, powered primarily by offshore wind and cooled by seawater. Designed for a power usage effectiveness (PUE) of ≤1.15, the facility claims more than 90% lower land use and eliminates freshwater for cooling.

Where to Focus: “Green computing” is becoming a competitive differentiator for companies and nations that are pursuing low-carbon capacity. Building energy systems offshore, underwater, and near population centers highlights how committed nations are to low-carbon energy development. For executives, the takeaway is that data gravity, energy sourcing, and sustainability KPIs are converging. Future cloud and AI strategies will be shaped as much by power, cooling, and the permitting of innovation as they will be by chips and software.

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