FOR IMMEDIATE RELEASE                                          AT
TUESDAY, DECEMBER 12, 1995                         (202) 616-2771
                                               TDD (202) 514-1888
                                
   U.S. JUSTICE DEPARTMENT AND TEXAS ATTORNEY GENERAL REQUIRE
KIMBERLY-CLARK AND SCOTT PAPER TO RESTRUCTURE $8.9 BILLION MERGER
                                
                                
     WASHINGTON, D.C. -- The Department of Justice and the Texas
State Attorney General obtained a settlement today with two of
the nation's largest consumer paper products companies--Kimberly-Clark Corporation and Scott Paper Co.--that will allow the
companies to go forward with their $8.9 billion merger as long as
they sell Scott's facial tissue and baby wipes businesses.  The
Department and the Texas Attorney General's office said that
without the divestiture, the companies would dominate the facial
tissue and baby wipes markets.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Department's Antitrust Division, said, "Tissues and baby
wipes are used by millions of American families everyday across
the country.  We can't allow a merger to proceed that could raise
prices of these household necessities."
     The Department's Antitrust Division and the Texas Attorney
General's office filed a joint antitrust suit today in U.S.
District Court in Dallas to block the original deal.  At the same
time, a proposed settlement was filed that, if approved by the
court, would settle the suit.
     The Department said that a combination of Kimberly-Clark and
Scott would control nearly 60 percent of sales of facial tissue
and more than 55 percent of sales of baby wipes.  The deal as
originally proposed could enable the companies to increase prices
to consumers and substantially reduce competition in the $1.34
billion market for facial tissue and the $500 million market for
baby wipes, the Department said.
     Kimberly-Clark of Dallas, makes Kleenex, the nation's
leading brand of facial tissue, and Huggies, the second leading
brand of baby wipes.  Scott Paper of Boca Raton, Florida, makes
the third leading brand of facial tissue, Scotties, and two of
the country's best selling brands of baby wipes, Baby Fresh and
Wash-a-Bye Baby.  
     Kimberly-Clark and Scott agreed to divest:
       Scott's baby wipes and facial tissue brands.
       Scott's Dover, Delaware, plant used to make Scott baby
wipes and other products.
       A maximum of two of four tissue mills:  Scott's mills in
Marinette, Wisconsin, and Ft. Edward, New York; Kimberly-Clark's
Lakeview mill and Badger-Globe mill, both in Neenah, Wisconsin.
     Texas Attorney General Dan Morales said, "The consent
decree, by requiring the parties to sell the Scott baby wipes and
facial tissue businesses to a new firm, will ensure that the
markets for facial tissue and baby wipes remain competitive, and
the prices for these products reasonable."
     As required by the Tunney Act, the proposed consent decree
will be published in the Federal Register, together with the
Department's competitive impact statement.  Any person may submit
written comments concerning the proposed consent decree during a
60-day comment period to Anthony V. Nanni, Chief, Litigation I
Section, Antitrust Division, U.S. Department of Justice, Suite
4000, 1401 H Street, N.W., Washington, DC 20530 (202) 307-6583.       At the conclusion of the 60-day comment period, the federal
district court in Dallas, may enter the consent decree upon
finding that it serves the public interest.      
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95-623