Sanofi Deal: French Government Sets Conditions and Considers Blockade

A political controversy is unfolding over the planned sale of Sanofi's consumer goods division to the U.S. private equity fund Clayton, Dubilier & Rice (CD&R) valued at 15.5 billion euros. France's Industry Minister Marc Ferracci stated on the radio that the option of blocking the deal is "absolutely on the table" as long as the government's requirements are not met. The French government's stipulations, which are required of Sanofi and the potential buyer, include commitments to job security, production facilities in France, production volumes, as well as research and development. These concerns are not new; however, they have gained political significance since CD&R's successful bid against a consortium involving the French private equity group PAI was announced. Under the terms discussed so far, Sanofi would retain 50 percent of the consumer goods business, known as Opella, while CD&R is to hold 50 percent of the stakes. To safeguard French interests, it is even being considered that a state investment company like Bpifrance might join in. Finance Minister Antoine Armand assured during a visit to a Sanofi factory that Doliprane would continue to be produced in France. Critics argue that the deal undermines President Emmanuel Macron's efforts to strengthen domestic pharmaceutical production. This strategy is intended to secure France's sovereignty in essential economic sectors and create industrial jobs. Politicians from various camps oppose the sale, and an open letter signed by 60 parliamentarians called for an investigation into the move. Jordan Bardella from the far-right National Rally criticized the sale as part of the “sale of France.” The loss of health and employment sovereignty is enormous, and it would be incomprehensible if the state allowed this to happen.