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Nov. 3 (UPI) — The Texas-based Kimberly-Clark Corporation announced Monday it reached a deal to purchase Kenvue — the maker of Band-Aid and Tylenol products — for $48.7 billion.

The combination cash and stock transaction will see Kimberly-Clark acquire all outstanding shares of Kenvue common stock. A news release from Kimberly-Clark said the sale will put 10 billion-dollar brands together under the same company.

Kimberly-Clark’s brands include Kleenex, Cottonelle, Huggies, Poise, Pull-Ups, Scott, Viva and Kotex.

“We are excited to bring together two iconic companies to create a global health and wellness leader,” CEO Mike Hsu said.

“With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”

Kimberly-Clark said the sale is expected to close in the second half of 2026 upon approval by shareholders of both companies. Upon completion, Hsu will serve as chairman of the board and CEO of the combined company. Meanwhile, three board members from Kenue will join Kimberly-Clark’s board.

In the wake of the news, Kenvue’s shares increased 20% in premarket trading, and Kimberly-Clark’s decreased by 14% Monday, CNBC reported.

Less than a week before the announcement, Texas Attorney General Ken Paxton announced he was suing Kenvue and its parent company, Johnson & Johnson, for “deceptively marketing” Tylenol as a safe pain reliever.

The Trump administration announced in September that there was a link between Tylenol and an increased risk of autism, though, on Thursday, Health and Human Services Secretary Robert F. Kennedy said there wasn’t sufficient evidence to explicitly claim that Tylenol causes autism.

Warren Buffett will step down as CEO of Berkshire Hathaway (BRK.A 0.39%) (BRK.B 0.30%) at the end of the year. But before he does, the conglomerate he’s run for nearly 60 years will make at least one more big acquisition.

The Oracle of Omaha and soon-to-be CEO Greg Abel expect to close on a deal to acquire the petrochemicals business OxyChem from Occidental Petroleum (OXY 0.32%) in the fourth quarter. Berkshire will pay $9.7 billion in cash, which will barely make a dent in the $340 billion sitting on the company’s balance sheet. Still, it represents the largest purchase for Berkshire since Allegheny Corp. in 2022.

The deal is an exceptional example of Warren Buffett’s investing style, which relies on being in a good position to act when great opportunities present themselves. Here’s what Berkshire Hathaway is getting in the deal, and why it’s an absolutely genius move.

Image source: The Motley Fool.

What is Berkshire buying?

OxyChem is a leading petrochemical company, one of the largest producers of caustic soda, potash, chlor-alkali, and PVC. It’s a global operation with 23 facilities worldwide, and Greg Abel described the acquisition as “a robust portfolio of operating assets, supported by an accomplished team.”

However, the industry is facing pressure. Weak pricing for caustic soda and PVC led to disappointing pre-tax earnings in the second quarter of just $213 million. Management revised its outlook for the business for full-year pre-tax income low to between $800 million and $900 million for this year.

Occidental’s management expects the supply side pressure on pricing to mitigate next year. In management’s first quarter earnings call, it said it expects to generate “$1 billion in incremental pre-tax cash flow from non-oil and gas source in 2026, with further expansion in 2027.” Part of that improvement is from modernization of OxyChem facilities.

In the meantime, though, Berkshire is swooping in to buy the assets when the entire industry is near a cyclical trough. The $9.7 billion price tag is estimated to be around 8 times OxyChem’s 2025 EBITDA expectations. That’s roughly in line with other chemical stocks like Eastman Chemical and Dow, but the entire industry is seeing lower earnings multiples due to the same headwinds pushing profits lower at OxyChem.

If the industry turns around as Occidental’s management expects, Berkshire could be getting a heck of a bargain. But the way it’s acquired the business makes it an even better deal for Berkshire and its shareholders.

The cherry on top for Berkshire

The big reason Occidental was willing to sell OxyChem despite expectations that it will see significantly improved earnings and cash flow over the next few years is because it needs cash. The oil and gas company took on additional debt to acquire CrownRock in August of 2024.

The increase in debt on Occidental’s balance sheet was always meant to be temporary. When it announced the acquisition, management said it plans to divest assets and use excess cash flow to reduce its debt levels back below $15 billion. While it’s been aggressive in using excess cash to pay down debt, the company still had $24 billion worth of debt on its balance sheet as of the end of the second quarter.

The cash infusion from Berkshire is set to net $8 billion after taxes. Of that, $6.5 billion will go toward paying down debt, with the other $1.5 billion going to Occidental’s coffers. Combined with debt pay down from excess free cash flow, management expects to meet its sub-$15 billion target.

The debt reduction indirectly benefits Berkshire as well. The conglomerate owns a 28% stake in the business. The stronger balance sheet should support projects to maximize its vast resources in the Permian Basin while improving its free cash flow position with reduced debt burden. That should support long-term growth for the business.

One other aspect of the deal provides tremendous benefits to Berkshire and its investors. Instead of using Berkshire’s preferred shares of Occidental to acquire OxyChem, Buffett and Abel managed to convince the company to take cash. That means Berkshire will continue to collect its 8% annual dividend on the $8.5 billion in preferred shares it continues to hold. That’s a much better yield than the company’s getting on its short-term Treasury bills.

Occidental says it plans to start redeeming those preferred shares in August of 2029, giving Berkshire shareholders at least three more years of extra-high yields. That’s just the cherry on top for Berkshire shareholders, who finally saw Buffett put some of Berkshire’s growing cash pile to work.

Inside a historic aircraft hangar in Playa Vista, crowds of people gathered on Thursday to browse the latest fashions from handbags to clothing and shoes as they prepared for the holiday shopping season.

These weren’t shoppers or retailer buyers browsing for the latest products. Instead, they were YouTube video creators who were being courted by brands from Lowe’s to Shark Beauty to encourage online audiences to buy their products.

Aaron Ramirez, a 22-year-old influencer who focuses on men’s fashion and lifestyle, stood in front of racks of carefully curated shelves of backpacks as he decided which items he would endorse for his 234,000 YouTube subscribers.

“I can make a video about anything that improves my quality of life and add a link to it,” said Ramirez. “I only recommend products that I really use and really like.”

The San Diego resident was among about 300 creators participating in YouTube’s annual benefit for creators dubbed “Holiday House” that helps internet personalities get ready to sell goods during the busy holiday shopping season.

The event — held at the cavernous converted Google offices that once housed Howard Hughes’ famous Spruce Goose plane — underscores YouTube’s desire to be a bigger player in online shopping by leveraging its relationship with creators to promote products in much the same way that rival TikTok does.

In August, YouTube introduced new tools to help its creators better promote products they plug in their videos. One feature uses AI to identify the optimal place on the screen to put a shopping link when an influencer mentions a product. If a customer clicks on that link and makes a purchase, the creator gets a commission.

Brands that were once skeptical about influencers have embraced them over time as sales-tracking tools have improved and the fan base of video creators has mushroomed.

“It’s like the people that you saw on television and before that the people that you listened to on radio who became the trusted personalities in your life,” Earnest Pettie, a trends insight lead at YouTube, said in an interview. “Oprah’s Favorite Things was a phenomenon because of how trusted Oprah was, so it really is that same phenomenon, just diffused across the creator ecosystem.”

Despite economic uncertainty and tariffs imposed by the Trump administration, shoppers in the U.S. are expected to spend $253.4 billion online this holiday season, up 5.3% from a year ago, according to data firm Adobe Analytics.

Social media platforms have helped drive some of that growth. The market share of online revenue in purchases guided by social media affiliates and partners, including influencers, is expected to grow 14%, according to Adobe Analytics.

Cost-conscious consumers are doing more research on how they spend their money, including watching influencer recommendations. In fact, nearly 60% of 14- to 24-year-olds who go online say their personal style have been influenced by content they’ve seen on the internet, according to YouTube.

“It’s more about discovery, understanding where the best deals are, where the best options are,” said Vivek Pandya, director at Adobe Digital Insights. “Many of these users are getting that guidance from their influencers.”

YouTube is one of the top streaming platforms, harnessing 13.1% of viewing time in August on U.S. TV sets, more than rivals Netflix and Amazon Prime Video, according to Nielsen. And shopping-related videos are especially popular among its viewers, with more than 35 billion hours watched each year, according to YouTube.

With YouTube’s shopping feature, viewers can see products, add them to a cart and make purchases directly from the video they’re watching.

Promoting and enabling one-click e-commerce from video has been huge in China, triggering a wave across Asia and the world of livestreaming and recorded shopping videos. Live commerce, also known as live shopping or livestreaming e-commerce, is a potent mix of streaming, chatting and shopping.

The temptation to shop is turbocharged with algorithms like that of TikTok Shop, enticing people to try more channels and products.

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1. YouTube content creators Diana Extein, left, and Candice Waltrip, right, film clothing try-ons during YouTube’s Holiday House shopping event at Google Spruce Goose on Thursday, Oct. 16, 2025 in Playa Vista, CA. 2. YouTube content creator Peja Anne, 15, makes a video with beauty products as her mom Kristin Roeder films during YouTube’s Holiday House shopping event at Google Spruce Goose on Thursday, Oct. 16, 2025 in Playa Vista, CA.

A YouTube content creator who declined to give her name browses YouTube’s Holiday House shopping event at Google Spruce Goose on Thursday in Playa Vista, Calif.

YouTube content creator Cheraye Lewis’ channel focuses on lifestyle and fragrance, and a brand deal with Fenty Beauty helped launch her content to larger audiences.

More than 500,000 video creators as of July have signed up to be a part of YouTube Shopping, the company said.

Creators who promote products can make money through ads and brand deals, as well as commissions.

YouTube already shares advertising and subscription revenue with its creators and currently does not take a cut from its shopping tools, said Travis Katz, YouTube Shopping vice president.

“For us, it’s really about connecting the dots,” Katz said. “At YouTube we are first and foremost very focused on, how do we make sure that our creators are successful? This gives a new way for creators to monetize.”

Companies like Austin-based BK Beauty, which was founded by YouTube creator Lisa J, said YouTubers have helped drive sales for their products.

“They’ve built these long-term audiences,” said Sophia Monetti, BK Beauty’s senior manager of social commerce and influencer marketing. “A lot of these creators have established channels. They’ve been around for a decade and have just a really engaged community.”

To be sure, YouTube faces a formidable rival in TikTok, which is a leader in the live shopping space (its parent company, Byte Dance, is being sold to an American investor group so that the hugely popular app can keep operating in the U.S.).

Two years ago, the social video company launched TikTok Shop, working with creators and brands on live shopping shows that encourage viewers to buy products. TikTok had 8 million hours of live shopping sessions in 2024.

YouTube says its size and technology create advantages, along with the loyalty its creators build with fans when it comes to product recommendations.

Bridget Dolan, a director of YouTube Shopping Partnerships, said “shopping has been in YouTube’s DNA from Day One” and that the company has been integrating shopping features into its viewing experience.

YouTube content creators peruse products and film content during YouTube’s Holiday House shopping event at Google Spruce Goose on Thursday in Playa Vista, Calif.

Santa Clarita-based YouTube creator Cheraye Lewis said that YouTube Shopping helped her gain traction and earn a trusting audience through quality recommendations. Lewis, who has 109,000 subscribers on YouTube, makes videos about items such as fragrances and skincare products.

Lewis has been a video creator for eight years and has worked with such companies as Rihanna’s beauty brand Fenty.

“I try to inspire women and men to feel bold and confident through the fragrances that they’re wearing,” Lewis said at the event Thursday. “I give my audience real talk, real authenticity.”

On October 16, 2025, Collar Capital Management, LLC disclosed a new position in Salesforce (CRM 3.83%), acquiring 14,161 shares in a trade estimated at $3.36 million as of September 30, 2025.

What happened

According to a filing with the U.S. Securities and Exchange Commission (SEC) dated October 16, 2025, Collar Capital Management, LLC initiated a new position in Salesforce, purchasing approximately 14,161 shares. The estimated value of the acquisition was $3.36 million as of September 30, 2025. This transaction brought the fund’s total number of reportable positions to 71.

What else to know

This new $3.36 million position accounts for 2.36% of the fund’s $142.14 million in reportable U.S. equity holdings as of September 30, 2025.

Top holdings after the filing:

NASDAQ:MSTR: $7.33 million (5.2% of AUM) as of September 30, 2025

NASDAQ:TSLA: $7.19 million (5.1% of AUM) as of September 30, 2025

NASDAQ:MU: $5.15 million (3.6% of AUM) as of September 30, 2025

NASDAQ:COIN: $4.96 million (3.5% of AUM) as of September 30, 2025

NASDAQ:AAPL: $4.85 million (3.4% of AUM) as of September 30, 2025

As of October 15, 2025, Salesforce shares were priced at $236.58, down 17.95% over the past year and underperforming the S&P 500 by 32.23 percentage points (source: FMP, 1-year price change: -17.95%, 1-year alpha vs S&P 500: -32.23%).

Company overview

Company snapshot

Salesforce offers a comprehensive suite of cloud-based solutions, including its Customer 360 platform, Sales, Service, Marketing, Commerce, Tableau analytics, MuleSoft integration, and Slack collaboration tools.

It serves a global customer base across industries including financial services, healthcare, and manufacturing.

The company generates revenue primarily through subscription-based software and professional services.

Salesforce is a leading provider of enterprise cloud software, enabling organizations to manage customer relationships and business processes at scale. Its platform-centric strategy and broad product ecosystem position it as a key player in digital transformation initiatives.

Foolish take

Collar Capital appears to be making a contrarian move with the customer relationship management (CRM) specialist. The stock has tumbled about  26% in 2025.

Salesforce wasn’t a holding for Collar Capital in the second quarter. After buying 14,161 shares in the third quarter, it’s the fund’s 13th largest holding.

Salesforce was the second largest new acquisition Collar Capital completed in the third quarter. It also acquired 12,590 shares of UnitedHealth Group worth about $4.3 million. UnitedHealth Group is now the fund’s sixth largest holding.

Salesforce’s investments in artificial intelligence are starting to pay off for investors. In its fiscal second quarter that ended July 31, 2025, Data Cloud and AI annual recurring revenue climbed over 120% year over year to $1.2 billion.

Success with its new AI tools encouraged management to raise expectations. Now, it expects operating cash flow in fiscal 2026 to rise by 12% to 13% year over year.

Glossary

AUM: Assets under management – The total market value of investments managed by a fund or investment firm.

Position: The amount of a particular security or asset held in a portfolio.

Reportable positions: Holdings that must be disclosed to regulators, typically due to size or regulatory requirements.

Stake: The ownership interest or share in a company or asset.

Filing: An official document submitted to a regulatory authority, often detailing financial or ownership information.

Alpha: A measure of an investment’s performance relative to a benchmark, indicating value added or lost.

TTM: The 12-month period ending with the most recent quarterly report.

Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its stock price.

Cloud-based solutions: Software and services delivered over the internet rather than installed locally on computers.

Platform-centric strategy: A business approach focused on building and expanding a central technology platform for multiple products or services.