Johnson & Johnson (NYSE:JNJ)'s consumer health spinoff Kenvue will replace Advance Auto Parts in the S&P 500 index effective Friday, August 25, the index announced.
This comes after J&J offered to exchange its shares in Kenvue for shares of J&J in a split-off exchange that expired last Friday.
Following the completion of the share exchange offer, J&J said it expects to retain a stake of approximately 9.5% in Kenvue.
The addition of Kenvue to the S&P 500 is expected to boost the stock, with significant trading action anticipated on Thursday ahead of it being included in the index.
Shares of Kenvue, whose portfolio includes prominent brands like Listerine, Band-Aid, and Tylenol, had added 3.4% at US$23.66 shortly before noon on Tuesday.
J&J shares were modestly lower, down 0.2% at US$166.98.
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