Kimberly-Clark is buying Tylenol maker Kenvue in a cash and stock deal worth about $48.7 billion, creating a massive consumer health goods company.
Shareholders of Kimberly-Clark will own about 54% of the combined company. Kenvue shareholders will own about 46%.
The combined company will have a large stable of household brands under one roof, putting Kenvue’s Listerine mouthwash and Band-Aid side-by-side with Kimberly-Clark’s Cottonelle toilet paper, Huggies and Kleenex tissues. It will also generate about $32 billion in annual revenue.
Kenvue has spent a relatively brief period as an independent company, having been spun off by Johnson & Johnson two years ago. J&J first announced in late 2021 that it was splitting its consumer health division from the pharmaceutical and medical device divisions.
The deal announced Monday is among the largest corporate takeovers of the year.
Kenvue was thrust into the national spotlight last month when Health Secretary Robert F. Kennedy, Jr. reasserted the unproven link between the pain reliever Tylenol and autism, and suggested people who opposed the theory were motivated by hatred for President Donald Trump.
During a meeting with Trump and the Cabinet, Kennedy reiterated the connection, even while noting there was no medical proof to substantiate the claim.
In July Kenvue, announced that CEO Thibaut Mongon was leaving in the midst of a strategic review with the company under mounting pressure from activist investors. Board member Kirk Perry is serving as interim CEO.
“We will serve billions of consumers across every stage of life,” Kimberly-Clark Chairman and CEO Mike Hsu said in a statement.
Hsu will be chairman and CEO of the combined company. Three members of the Kenvue’s board will join Kimberly-Clark’s board at closing. The combined company will keep Kimberly-Clark’s headquarters in Irving, Texas and continue to have a significant presence in Kenvue’s locations.
The deal is expected to close in the second half of next year. It still needs approval from shareholders of both both companies.
Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. That amounts to $21.01 per share, based on the closing price of Kimberly-Clark shares on Friday.
Kimberly-Clark and Kenvue said that they identified about $1.9 billion in cost savings that are expected in the first three years after the transaction’s closing.
Shares of Kimberly-Clark slipped more than 15% before the market open, while Kenvue’s stock jumped more than 20%.
Lawyers for Luigi Mangione asked a New York federal judge Saturday to dismiss some criminal charges, including the only count for which he could face the death penalty, from a federal indictment brought against him in the December assassination of UnitedHealthcare’s chief executive.
In papers filed in Manhattan federal court, the lawyers said prosecutors should also be prevented from using at trial his statements to law enforcement officers and his backpack where a gun and ammunition were found.
They said Mangione was not read his rights before he was questioned by law enforcement officers, who arrested him after Brian Thompson was fatally shot as he arrived at a Manhattan hotel for an investor conference.
They added that officers did not obtain a warrant before searching Mangione’s backpack.
Mangione, 27, has pleaded not guilty to state and federal charges in the fatal shooting of Brian Thompson on Dec. 4 as he arrived at a Manhattan hotel for his company’s annual investor conference.
The killing set off a multi-state search after the suspected shooter slipped away from the scene and rode a bike to Central Park, before taking a taxi to a bus depot that offers service to several nearby states.
Five days later, a tip from a McDonald’s about 233 miles (375 kilometers) away in Altoona, Pennsylvania, led police to arrest Mangione. He has been held without bail since then.
In their submission, defense lawyers provided a minute-by-minute description of how police officers apprehended a cooperative Mangione, including a photograph from a police body-worn camera of the suspect initially sitting alone at a table with a white mask covering nearly all of his face.
They said Mangione was first approached by two “fully armed” police officers when one of them “told Mr. Mangione that someone had called the police because they thought he was suspicious” after he’d been there about 40 minutes.
When the officers asked to see his identification, Mangione turned over a New Jersey driver’s license with someone else’s name, according to the filing.
As Mangione prepared to eat his food, the officers asked him to stand up with his hands atop his head so they could frisk him, the lawyers wrote.
Soon afterward, one of the officers went outside to summon more officers, telling a colleague he was “100 percent” convinced that Mangione was the suspect they were looking for, the lawyers said. Within minutes, nearly a half dozen additional officer arrived.
Last month, lawyers for Mangione asked that his federal charges be dismissed and the death penalty be taken off the table as a result of public comments by U.S. Attorney General Pam Bondi. In April, Bondi directed prosecutors in New York to seek the death penalty, calling the killing of Thompson a “premeditated, cold-blooded assassination that shocked America.”
Murder cases are usually tried in state courts, but prosecutors have also charged Mangione under a federal law on murders committed with firearms as part of other “crimes of violence.” It’s the only charge for which Mangione could face the death penalty, since it’s not used in New York state.
The papers filed early Saturday morning argued that this charge should be dismissed because prosecutors have failed to identify the other offenses that would be required to convict him, saying that the alleged other crime — stalking — is not a crime of violence.
The assassination and its aftermath have captured the American imagination, setting off a cascade of resentment and online vitriol toward U.S. health insurers while rattling corporate executives concerned about security.
After the killing, investigators found the words “delay,” “deny” and “depose,” written in permanent marker on ammunition at the scene. The words mimic a phrase used by insurance industry critics.
Mexican authorities said they arrested former soccer player Omar Bravo, 45, on suspicion of child sexual abuse.
The Jalisco state prosecutor’s office said in a statement that investigations indicate Bravo allegedly abused a teenage girl on several occasions in recent months and may have committed similar acts before.
He was arrested during an operation in the municipality of Zapopan and was expected to appear in court soon.
Bravo rose to fame playing as a forward for Chivas de Guadalajara, where he became the club’s all-time leading goal scorer. He also played for Mexico’s national team in the 2004 Athens Olympics and the 2006 World Cup in Germany.
The Associated Press could not immediately reach a lawyer for Bravo.
On Bravo’s Instagram account, fans commented on his latest post from Sept. 8, which made no reference to the accusations. Some expressed sadness, while others said he was their idol and hoped the allegations were not true.
The prosecutor’s office said it will continue its investigation.
Artificial intelligence company Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit by book authors who say the company took pirated copies of their works to train its chatbot.
The landmark settlement, if approved by a judge as soon as Monday, could mark a turning point in legal battles between AI companies and the writers, visual artists and other creative professionals who accuse them of copyright infringement.
The company has agreed to pay authors or publishers about $3,000 for each of an estimated 500,000 books covered by the settlement.
“As best as we can tell, it’s the largest copyright recovery ever,” said Justin Nelson, a lawyer for the authors. “It is the first of its kind in the AI era.”
A trio of authors — thriller novelist Andrea Bartz and nonfiction writers Charles Graeber and Kirk Wallace Johnson — sued last year and now represent a broader group of writers and publishers whose books Anthropic downloaded to train its chatbot Claude.
A federal judge dealt the case a mixed ruling in June, finding that training AI chatbots on copyrighted books wasn’t illegal but that Anthropic wrongfully acquired millions of books through pirate websites.
If Anthropic had not settled, experts say losing the case after a scheduled December trial could have cost the San Francisco-based company even more money.
“We were looking at a strong possibility of multiple billions of dollars, enough to potentially cripple or even put Anthropic out of business,” said Thomas Long, a legal analyst for Wolters Kluwer.
U.S. District Judge William Alsup of San Francisco has scheduled a Monday hearing to review the settlement terms.
Anthropic said in a statement Friday that the settlement, if approved, “will resolve the plaintiffs’ remaining legacy claims.”
“We remain committed to developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” said Aparna Sridhar, the company’s deputy general counsel.
As part of the settlement, the company has also agreed to destroy the original book files it downloaded.
Books are known to be important sources of data — in essence, billions of words carefully strung together — that are needed to build the AI large language models behind chatbots like Anthropic’s Claude and its chief rival, OpenAI’s ChatGPT.
Alsup’s June ruling found that Anthropic had downloaded more than 7 million digitized books that it “knew had been pirated.” It started with nearly 200,000 from an online library called Books3, assembled by AI researchers outside of OpenAI to match the vast collections on which ChatGPT was trained.
Debut thriller novel “The Lost Night” by Bartz, a lead plaintiff in the case, was among those found in the dataset. Anthropic later took at least 5 million copies from the pirate website Library Genesis, or LibGen, and at least 2 million copies from the Pirate Library Mirror, Alsup wrote.
The Authors Guild told its thousands of members last month that it expected “damages will be minimally $750 per work and could be much higher” if Anthropic was found at trial to have willfully infringed their copyrights. The settlement’s higher award — approximately $3,000 per work — likely reflects a smaller pool of affected books, after taking out duplicates and those without copyright.
On Friday, Mary Rasenberger, CEO of the Authors Guild, called the settlement “an excellent result for authors, publishers, and rightsholders generally, sending a strong message to the AI industry that there are serious consequences when they pirate authors’ works to train their AI, robbing those least able to afford it.”
The Danish Rights Alliance, which successfully fought to take down one of those shadow libraries, said Friday that the settlement would be of little help to European writers and publishers whose works aren’t registered with the U.S. Copyright Office.
“On the one hand, it’s comforting to see that compiling AI training datasets by downloading millions of books from known illegal file-sharing sites comes at a price,” said Thomas Heldrup, the group’s head of content protection and enforcement.
An executive order signed by President Donald Trump late Thursday aims to give political appointees power over the billions of dollars in grants awarded by federal agencies. Scientists say it threatens to undermine the process that has helped make the U.S. the world leader in research and development.
The order requires all federal agencies, including FEMA, the National Science Foundation and the National Institutes of Health, to appoint officials responsible for reviewing federal funding opportunities and grants, so that they “are consistent with agency priorities and the national interest.”
It also requires agencies to make it so that current and future federal grants can be terminated at any time — including during the grant period itself.
Agencies cannot announce new funding opportunities until the new protocols are in place, according to the order. The Trump administration said these changes are part of an effort to “strengthen oversight” and “streamline agency grantmaking.” Scientists say the order will cripple America’s scientific engine by placing control over federal research funds in the hands of people who are influenced by politics and lack relevant expertise.
“This is taking political control of a once politically neutral mechanism for funding science in the U.S.,” said Joseph Bak-Coleman, a scientist studying group decision-making at the University of Washington.
The changes will delay grant review and approval, slowing “progress for cures and treatments that patients and families across the country urgently need,” said the Association of American Medical Colleges in a statement.
The administration has already terminated thousands of research grants at agencies like the NSF and NIH, including on topics like transgender health, vaccine hesitancy, misinformation and diversity, equity and inclusion.
The order could affect emergency relief grants doled out by FEMA, public safety initiatives funded by the Department of Justice and public health efforts supported by the Centers for Disease Control. Experts say the order is likely to be challenged in court.
