In a landmark $40 billion cash-and-stock transaction, Kimberly-Clark, the maker of Kleenex and Huggies, is set to acquire Kenvue, the company behind Tylenol and other household brands like Band-Aid and Neutrogena. The deal aims to create a consumer goods powerhouse, combining some of the most widely used health and wellness products globally. However, the acquisition comes amid significant challenges for Kenvue, including declining sales, legal battles, and controversies surrounding its products. The Trump administration recently linked Tylenol use during pregnancy to autism, a claim disputed by scientists, which further impacted Kenvue’s stock performance. Kenvue, spun off from Johnson & Johnson in 2023, has seen its shares drop nearly 30% over the past year, making it a target for activist investors pushing for a sale. The merger, expected to close in the second half of next year, will generate $32 billion in combined sales this year, according to executives. While Kenvue shares surged 17% following the announcement, Kimberly-Clark’s stock fell over 10%, reflecting investor skepticism about the deal’s risks. Kenvue also faces a lawsuit from the Texas attorney general alleging the company concealed potential risks of its products to children’s brain development. Additionally, Johnson & Johnson, Kenvue’s former parent, has been embroiled in lawsuits over its talcum powder products, accused of containing asbestos, which the company denies.