Kimberly-Clark Shares Plunge Following Major Acquisition

Investors have sent Kimberly-Clark stock into a steep decline following the company’s announcement of a massive $48.7 billion deal to acquire Kenvue. The dramatic market reaction wiped out approximately $5.8 billion in market capitalization during a single trading session, with shares plummeting over 14% to establish a new 52-week low.

The acquisition strategy aims to position Kimberly-Clark within higher-growth margin segments, with the combined entity projected to generate annual revenues around $32 billion. However, market participants remain unconvinced, particularly regarding the promised $2.1 billion in synergies. This skepticism was immediately evident as trading opened with shares at a modest $100.05.

Credit rating agency S&P Global Ratings responded to the news by revising Read more...