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In the News Teaching Activity – Is a takeover in the health goods industry in the consumer interest? (Nov 2025)

Elizabeth Veal

10th November 2025

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Kimberly-Clark’s $40bn takeover of Kenvue ignites debate over growth and consumer impact

In the spotlight is Kimberly-Clark’s proposed $40bn takeover of Kenvue — a deal promising business growth and enhanced profitability through a vast consumer health conglomerate. Supporters argue the merger could boost efficiency, cut costs and strengthen global competitiveness, creating a powerhouse spanning everything from Kleenex to Tylenol. Yet critics warn it may erode competition and consumer choice, giving the combined firm greater pricing power and market dominance. While shareholders eye higher returns, the question lingers: will consumers gain from efficiencies — or lose out to consolidation?

Kimberly-Clark buys Tylenol-maker Kenvue in more than $40bn deal - BBC News

1. Explain what is meant by a takeover.

2. Using the article, outline two potential reasons why Kimberly-Clark might want to take over Kenvue.

3. Discuss whether this takeover is likely to be in the best interests of consumers.

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Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.