New Delhi, Nov. 3 -- Consumer goods and personal care giant Kimberley-Clark is buying Tylenol-maker Kenvue in a $40 billion deal involving stock and cash, in what can be called a mammoth merger of two consumer health goods companies.

The landmark deal for the consumer sector comes as Kenvue's flagship drug, Tylenol, faces White House scrutiny and choppy demand.

With the merger, Kimberley-Clark would surpass Unilever to become the second-largest company that sells health and wellness products, after Procter & Gamble Co.

Shareholders of Kenvue get $3.50 per share in cash and 0.14625 Kimberly-Clark shares per Kenvue share, the companies said in a statement on Monday. That implies an equity value of $40.32 billion, according to calculation...