• Pull-and-refile request predated diaper investigation
• Scholar’s complaints cited as key factor behind delay
• Clearance expected to be granted in due course

China’s ongoing investigation into infant diaper brands is not expected to influence the country’s merger review of Kimberly-Clark’s proposed acquisition of Kenvue, four sources familiar with the matter said.

Prior to launching its 22 June investigation into alleged formamide contamination in Kimberly-Clark’s Huggies infant diapers, the State Administration for Market Regulation (SAMR) asked the deal parties to withdraw their original simplified-track filing and refile under the normal review procedure, the first and the second sources said.

The transfer of the review to the normal procedure was primarily attributable to complaints lodged by Chinese scholar Liu Xu, the first source said.

When the Kenvue deal was accepted for a simplified review by the Shaanxi Administration for Market Regulation on 7 May, it appeared on track for unconditional clearance, the second source said. But after Liu filed two complaints on 17 May and 12 June, SAMR took over the review from the local regulator and later asked the deal parties to withdraw and refile under the normal procedure. The refiling under the normal procedure was formally accepted in late July.

SAMR’s decision to move the transaction to the normal review track was not influenced by the diaper investigation, the four sources said. As a result, the timing of its merger review is unlikely to depend on the outcome of the probe, they added.

The deal does not raise substantial competition concerns, the first and the third sources said. An unconditional approval is widely viewed to be a matter of time, the third source added.

On 31 August, Liu submitted his third complaint regarding the deal, calling on SAMR to examine government subsidies received by the deal parties. An analysis by this news service found the complaint is unlikely to materially affect the merger review because assessing government subsidies would not be practical under the current legal framework.

Announced on 3 November 2025, Kenvue’s sale to Kimberly-Clark has an initial long stop date of 2 November 2026, which can be extended to 3 May 2027.

SAMR does not comment on ongoing deals.

Kimberly-Clark and Kenvue did not respond to requests for comment.