Sanofi reaches deal on terms of sale of consumer health arm, say French government sources
5:31 pm Sunday, October 20th, 2024
PARIS (Reuters) -Sanofi on Sunday reached an agreement on terms to sell a controlling stake in its consumer health unit Opella to U.S. private equity firm Clayton Dubilier & Rice (CD&R), French government sources said on Sunday. The breakthrough came after the investment group provided France with guarantees on maintaining jobs and production in the country following the talks between Sanofi, CD&R and the government, the sources said.
Sanofi declined to comment. The sale is estimated at around 15 billion euros ($16.29 billion), Reuters has previously reported. Opella generates annual revenues of 5.2 billion euros and employs 11,000 people globally, French newspaper Le Figaro said.
Sanofi, France’s biggest pharmaceutical group, said last week that it was in talks with CD&R for the sale of a 50% controlling stake in Opella, triggering criticism from government opponents over the potential loss of a strategic asset.
Business daily Les Echos and Le Figaro reported that the French public investment bank Bpifrance would take a 1% stake in Opella and hold a seat on the board.
“We have obtained guarantees that Opella stays and develops in France,” Finance Minister Antoine Armand said on Sunday on social media platform X. He also said Bpifrance would have a stake in Opella.
During the Covid-19 pandemic, the French government made pledges to restore self-sufficiency in healthcare. Labour unions last week called for strike action at Sanofi’s plants in France over fears a sale to CD&R could result in job losses.
($1 = 0.9204 euros)
(Reporting by Juliette Jabkhiro; Editing by Ros Russell, Richard Lough and Diane Craft)
