In Texas, we tend to take free markets seriously. That’s not because markets are perfect – they aren’t – but because they have a better track record than anything else of delivering prosperity, innovation, and choice. The proposed acquisition of Kenvue by Kimberly-Clark, headquartered in Irving, is a useful reminder of how markets and economic freedom work to benefit consumers.
You don’t have to be an economist to understand why this deal makes sense. The global consumer-health and household-products industries are intensely competitive and increasingly shaped by supply-chain efficiency, research investment, and scale. Producing safe, reliable, and affordable goods – whether diapers, tissues, pain relievers, or wound-care products – requires constant reinvestment and gains in efficiency. That’s why mergers often result in stronger, not weaker, competition.
Kimberly-Clark acquiring Kenvue is an effort to ensure that both companies operate more efficiently, invest more confidently, and innovate more aggressively. And for Texans, it underscores that our state is home to world-class companies that compete on the global stage, and their success brings real benefits in jobs, investment, and economic vitality.
Critics of mergers tend to assume that bigger somehow automatically means worse for consumers. But size, in itself, is neither a virtue nor a vice. What matters is whether a business combination enhances innovation, expands output, or improves consumer experience. In this case, the likely outcomes are encouraging. Consolidating distribution, harmonizing manufacturing operations, and streamlining product portfolios can reduce costs – savings that flow directly to households through lower prices, higher-quality goods, and higher wages for employees.
Moreover, in an industry where brand trust is indispensable, the ability to invest in product improvements and new formulations is crucial. A combined Kimberly-Clark–Kenvue entity would be better positioned to invest in materials science and consumer health. This is precisely the kind of activity policymakers should want to see more of, not less.
Unfortunately, Washington sometimes approaches mergers with a preconceived suspicion of “big” that ignores the advantages of scale. During the Biden administration, the antitrust debate was diverted from an emphasis on consumer welfare – the standard that served this country well for decades –toward European style competition policy and a kneejerk hostility to “bigness” that ignores the facts. The consumer-goods sector is full of vigorous competitors. The notion that one transaction could somehow freeze competition misunderstands how resilient and adaptive markets can be.
If anything, blocking or discouraging efficiency-enhancing mergers would make American firms less competitive globally. Foreign companies do not wait for permission from U.S. regulators to adapt. If we hamstring our own industry leaders, especially those headquartered in growth states like Texas, we risk ceding ground in innovation and manufacturing to markets that welcome, rather than fear, scale—and to countries that subsidize nationalized producers.
Texans understand that economic leadership is not achieved through top-down government regulation but through dynamic, innovative free markets that serve consumers. Kimberly-Clark is a great American success story that exemplifies that tradition.
Mergers and acquisitions should be judged by a simple standard: Are consumers harmed, or do they benefit? Everything we know about this transaction suggests that consumers stand to gain – from improved supply chains to better-designed products to enhanced competition with global giants.
Texas didn’t become an economic powerhouse by dictating business practices from Austin. We became one by championing policies that allow them to determine how they can best deliver what their customers want. Kimberly-Clark’s acquisition of Kenvue is a reminder of what a healthy, forward-looking market looks like. It’s not the government pushing companies around; it’s companies positioning themselves to serve consumers better.
That is something Texans should welcome – and something Washington should let proceed without unnecessary interference.