Category World News

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 &amp, Johnson unit that has had a turbulent year.

Kenvue 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&nbsp, some investors&nbsp, 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 rather avoid”, said Kimberly Forrest, chief investment officer at Bokeh Capital Partners.

Tylenol headaches

“Kimberly-Clark will take on potential litigation risk for the Tylenol brand… This is hard to quantify”, said TD Cowen analyst Robert Moskow.

There are concerns around&nbsp, Kenvue’s&nbsp, potential legal exposure to hundreds of private lawsuits alleging the company hid supposed links between Tylenol and autism or attention deficit hyperactivity disorder in children.

While US Health and Human Services Secretary Robert F Kennedy Jr recently said there is no conclusive evidence of such a link, he called existing data “very suggestive”.

US sales of Tylenol fell 11 percent between September 20 and October 4 after Trump’s remarks, BNP Paribas analyst Navann Ty said in a note last month.

Kenvue is also battling litigation tied to its talc-based baby powder products.

“Most investors expected Kenvue to sell off select brands, not the entire company, given the Tylenol and talc overhangs. But Kimberly-Clark likely saw long-term value in a strong brand portfolio trading at a steep discount”, said James Harlow, senior vice president at Novare Capital Management.

‘ Awesome ‘ for Kenvue

Kenvue&nbsp, investors&nbsp, cheered the deal.

One long-term investor who has spoken with the board and management over the past few months called the deal “awesome,” while others claimed that the price was not as good as they had anticipated before the White House’s administration began to criticize the business.

Kenvue has long experienced investor activism and weakness in its core businesses, particularly those that deal with skin health and beauty. The skin health segment’s third-quarter sales decreased by 3.2 percent to $ 1.04 billion, according to the company’s statement on Monday.

Kirk Perry, who was earlier named CEO of Kenvue, said, “We’re living in the murky middle, which is no place to live right now.

Conflicts in the sector

Kimberly-Clark is also navigating a more value-seeking shopper-driven consumer goods environment, which is compelled by businesses like Procter &amp, Gamble, to invest in smaller pack sizes and reduce underperforming business units.

As part of a restructuring, It&nbsp announced on Monday that it had sold a majority stake in its international tissue business to Brazilian pulp producer Suzano. The company said on Monday that the sale will help the Kenvue buyout.

Still, some analysts believe it reflects a shifting business climate. This demonstrates how large, transformational mergers are being fueled by easing rate expectations, according to Bokeh Capital’s and Forrest’s.

acquiring more than $40 billion

For each Kenvue share held, shareholders will receive $ 3.50 per share and $ 0.15 Kimberly-Clark shares. That implies an estimated $40.32 billion in equity, according to Reuters news agency calculations.

The agreement, which is anticipated to close in the second half of 2026, will be financed primarily by using debt and cash, with JPMorgan Chase Bank providing the commitment.

If the deal fails, either party may be required to pay a cash termination fee of $1.2 billion, according to a regulatory filing.

Former Israeli military prosecutor Yifat Tomer-Yerushalmi has been detained by Israel following her leak of a video last year showing Israeli soldiers abusing a Palestinian detainee at the notorious Sde Teiman military base.

Turkey has urged Israel to halt its repeated violations of the United States’ ceasefire in Gaza and allow for urgent humanitarian assistance to enter the troubled Palestinian enclave.

Following a meeting with senior diplomats from various Arab and Muslim nations in Istanbul on Monday to discuss a UN mandate for an international stabilization force in Gaza, as suggested in US President Donald Trump’s 20-point plan to put an end to the conflict, Foreign Minister Hakan Fidan made the statement.

At the summit, Turkiye hosted the foreign ministers of Indonesia, Qatar, Saudi Arabia, Jordan, Pakistan, and Jordan.

After the meeting, Fidan claimed that Israel has “regularly violated the ceasefire” and prevented Palestinians in Gaza from receiving food, medicine, and other humanitarian aid as a result of “regularly violating the US plan.”

We want the ceasefire to be in effect, the genocide to stop in Gaza, and there should be a two-step, permanent peace solution, according to Fidan.

According to him, “We do think that the international community should continue to put pressure on Israel,” noting that nearly 250 Palestinians have died as a result of Israeli attacks since the ceasefire ended on October 10. At least 236 of these deaths have been tracked by Al Jazeera’s own coverage.

The top diplomat from Turkey emphasized that his country wants to see a post-war pact between Palestine and Palestine. He added that the comments reflected the “joint view” of the nations present at the summit on Monday.

He urged that any offensives against Palestinians be stopped as soon as possible.

ceasefire is teetering.

The meeting on Monday was held as a result of Israeli attacks on Gaza and an ongoing blockade of humanitarian supplies, including food and medicines.

After discovering that one of the 13 captives that Hamas had taken from Israel as part of the ceasefire agreement, Israeli Prime Minister Benjamin Netanyahu ordered a strike operation across Gaza last week. In less than 24 hours, more than 100 people were killed, including 46 children.

Israel’s attacks continue, with three more fatalities reported on Monday, despite its promise on Wednesday to resume the deal.

According to a UN Office for the Coordination of Humanitarian Affairs (OCHA) survey released this week, half of Gaza’s households reported seeing the same or worsening food access since the ceasefire. Since mid-September, no food aid convoy has crossed the border into the north via a direct crossing, according to OCHA.

Just a quarter of the 600 trucks authorized by the ceasefire agreement were tracked by the Gaza Government Media Office, which reported an average of 145 aid-bearing trucks entering the Gaza Strip every day between October 10 and October 31.

Nothing is “clear” about the Gaza mandate.

A so-called international stabilization force (ISF), an international organization designed to oversee security inside Gaza, was suggested in Trump’s Gaza deal. According to the plan, the US would “work with Arab and international partners” to “train and support vetted Palestinian police forces in Gaza” after consulting with Jordan and Egypt.

As potential participants in the UN Security Council’s detailed definition and requirements are still a mystery, Al Jazeera’s Sinem Koseoglu reported from Istanbul.

What “international partners” would Israel permit joining the ISF would complicate matters even more. Gideon Saar, Israel’s foreign minister, said last week that Israel would not accept the presence of armed Turkish forces, posing questions about the availability of or rejection of peacekeepers.

Even as he consented to the plan, Netanyahu’s attitude appeared to diverge from Trump’s. The Israeli prime minister stated to reporters that “Israel will continue to bear security responsibility, including a security perimeter, for the foreseeable future,” during a press conference with Trump.

Former UN Special Coordinator’s Office for the Middle East Peace Process senior political advisor Miroslav Zafirov claimed that in order for ISF to operate effectively, it must be defined under “very clear standards under international law.”

Zafirov claimed that there are too many questions unanswered in the peace proposal.

Foreign Minister of Turkiye Fidan claimed that the international community had “overestimated” Israel’s willingness to support a two-state solution.

In Istanbul, the biggest city in Turkiye, foreign ministers from seven Arab and Islamic-majority nations met to discuss the possibility of establishing an international stabilization force in Gaza as well as the ceasefire there.

The meeting on Monday aimed to bring the nations closer to establishing the force, which would help keep the ceasefire in the Palestinian enclave, which has been difficult to maintain since it started in October.

Israel has repeatedly broken the ceasefire during that time, most recently when it launched another round of deadly attacks, killing more than 100 people, including 46 children, before “resuming” it. Since the ceasefire started, Israel has killed at least 236 Palestinians in Gaza overall.

Along with their Turkish counterparts, they also had foreign ministers from Qatar, Saudi Arabia, the United Arab Emirates, Jordan, Pakistan, and Indonesia. Some of them may join a stabbing force with their troops.

What information is necessary, as follows.

What is the status of the international stabilization force in Gaza?

After the meeting, Turkish Foreign Minister Hakan Fidan stated that discussions were still ongoing regarding the 20-point Gaza peace plan, which included the proposed international force.

The organization’s responsibilities have not yet been made known to the general public, and security inside the Gaza Strip is still expected to be managed by it.

According to Fidan, the nations participating in the meeting would “decide, based on the contents of this definition, whether to send soldiers or not.”

If they want to be involved, several nations have previously requested a UN Security Council resolution establishing the force. Additionally, potential members of the force want a clear definition of their duties.

In late September, they had a “fruitful” meeting with Trump, according to Turkish President Recep Tayyip Erdogan.

What is preventing the formation of the international force?

Between Israel and the Arab and Islamic countries involved, there is still a fundamental lack of trust. Israel’s actions since the ceasefire’s initiation and its ongoing attacks on Gaza have a major impact on this.

Israel has largely failed to fulfill its obligations under the ceasefire agreement up until now. Hunderte more people have been hurt, in addition to the fatalities. Israel also forbids the agreed-upon number of aid trucks from entering the besieged enclave and refuses to allow Palestinians in Gaza to rebuild their homes.

Israel makes its own claim that Hamas hasn’t quickly returned the bodies of dead captives. Hamas claims that the project is challenging because of the enormous amount of rubble that Israeli attacks and Israel’s search for bodies require in its search for bodies have created. Hasso points out that Israel has stopped importing new machinery into the Strip since the ceasefire started.

Fidan claimed that the Israelis were using excuses to try to end the ceasefire and that they were breaking their obligations under the agreement, adding that this was the people’s point of view.

Another subject that was discussed at the meeting was calling on Israel to end its frequent ceasefire violations and grant access to humanitarian aid in Gaza.

Members of the proposed stabilization force are primarily concerned about Israel’s complete commitment to the ceasefire, and are concerned about sending troops there. Soldiers from the international forces would therefore be at risk of being attacked and policing on the ground as Israel continues to bomb.

What position does Turkey hold regarding the ceasefire?

According to Fidan, Turkiye is working toward peace because there are still significant differences between Hamas and Israel that may not be resolved in the near future.

Erdogan has expressed extreme disapproval of Israel’s numerous ceasefire violations.

In remarks made by Turkiye’s president, “We all see that Israel’s record on this matter is very poor,” the statement read.

Erdogan continued to cite the administration’s occupation and attacks on the West Bank as evidence that it has massacred more than 200 innocent people since the ceasefire agreement.

We object to attempts to impair the integrity of the Al-Aqsa Mosque, the annexation of the [occupied] West Bank, or the change in Jerusalem’s status.

How do Turkiye and Israel’s relations stand?

Turkey is close to Israel for a long time, and it was the first state to recognize it in 1949.

However, the two countries’ ties fell dramatically as a result of Israel’s conflict in Gaza, which has resulted in the deaths of nearly 69, 000 Palestinians.

Erdogan has harshly criticized Israel’s actions during the conflict, and some analysts think Israel may be attempting to win Turkiye over time.

In the ceasefire negotiations, Turkiye has played a key role by encouraging Hamas to support Trump’s peace plan.