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Kimberly-Clark in $3.4 Billion Deal to Sell International Tissue Business - Barron's

1. KMB partners with Suzano to launch a global tissue company. 2. Kimberly-Clark will hold a 49% stake in the venture. 3. Suzano to pay $1.7 billion for majority ownership. 4. Stock buybacks planned using upfront cash proceeds. 5. Shift towards higher growth personal care segments anticipated by 2026.

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FAQ

Why Bearish?

The immediate market reaction saw KMB shares drop 2.1%, indicating investor concern.

How important is it?

Partnership can significantly shift KMB's operational focus and financial posture.

Why Long Term?

Though short-term volatility exists, strategic focus may yield benefits by 2026.

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