Kimberly-Clark to acquire the manufacturer of Tena for $4 billion, Trump had warned of risks to Tena

Kimberly-Clark has agreed to acquire struggling manufacturer Colgate for about $40 billion, which will make this toilet paper manufacturer a leader in the consumer health industry. Kimberly-Clark will acquire Colgate at a price of $21.01 per share, a 46% premium to Colgate's closing price last Friday. Both companies stated that based on enterprise value, this deal values Colgate at about $48.7 billion. This deal poses legal and political risks for Kimberly-Clark. Since Colgate separated from Johnson & Johnson in 2023, its financial condition has been poor, and it is currently engaged in an escalating battle with the Trump administration over the safety of its largest product, Colgate. This year, Colgate's stock price has fallen by nearly 33%. Kimberly-Clark stated that after the merger, the company's revenue will reach $32 billion, surpassing Unilever to become the second largest seller of health and wellness products, behind only Procter & Gamble. Kimberly-Clark's stock price plummeted 14% in New York, marking its largest single-day decline since 2000. Meanwhile, Colgate's stock price soared 20% to $17.18 at the opening, still below the IPO price.