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News  ›  The Motley Fool

Why Kimberly-Clark Stock Just Dropped

The Motley Fool Logo The Motley Fool By Rich Smith
Why Kimberly-Clark Stock Just Dropped

Kimberly-Clark announced a $48.7 billion acquisition of Kenvue, a consumer goods company with 10 billion-dollar brands, which will result in a combined $32 billion annual sales company. While Kenvue shareholders are pleased, Kimberly-Clark's stock dropped due to the high acquisition premium.

Insights
TER   positive

Stock rose 20% during trading session


KMB   negative

Stock dropped 12.5% due to high acquisition premium of 46% for Kenvue and potential financial strain of the merger