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Kimberly-Clark To Sell Majority of $3.4B Global Tissue Business

1. Kimberly-Clark forms joint venture with Suzano, each holding stakes in tissue business. 2. Suzano will own 51% of the new venture, KMB retains 49%. 3. International tissue business expected to generate $3.3 billion in 2024. 4. KMB focuses on higher growth, higher margin segments per CEO statement. 5. KMB shares fell 2% while Suzano's stock rose by 5% post-announcement.

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FAQ

Why Neutral?

The joint venture aims for focus on higher margin businesses but doesn't guarantee immediate financial benefits for KMB.

How important is it?

Strategic partnership indicates focus shift but results depend on execution and market conditions.

Why Long Term?

The restructuring may enhance profitability over an extended period but immediate impacts are unclear.

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