The deal has analysts puzzled, as the US maker of Tylenol has seen sales dip after the White House linked it to autism.

Kenvue's shareholders will receive $3.50 per share and 0.15 Kimberly-Clark shares for each Kenvue share held.

The combined company would bring together brands like Huggies and Kleenex with the likes of Band-Aid and Tylenol.