Paris backs €15B sale of paracetamol-maker to US fund after winning guarantees

PARIS ― The French government said Sunday it is backing the sale of a subsidiary of pharmaceuticals multinational Sanofi that produces over-the-counter drugs to American private equity firm CD&R after obtaining commitments to keep jobs, production and management in France.

Economy Minister Antoine Armand said the government had been assured the deal, which is reported to be worth over €15 billion, won’t negatively affect the supply of essential medicines in France, including paracetamol, nor will it lead to job losses.

Bpifrance, the country’s public investment bank, will take shares in Opella, the Sanofi subsidiary that is being sold to the American fund, but will not have a controlling majority.

“We have obtained guarantees that Opella will remain and develop in France,” Armand said. “Our demands regarding employment, production and investment will be respected.”

The takeover has proven highly controversial in France, with politicians from across the political spectrum warning it could threaten manufacturing jobs and thwart Europe’s push to secure its supply chains for critical medicines.

As previously reported, however, the French government is keen on the deal.

An economy ministry official told reporters Sunday evening that Paris had obtained “the highest possible level of guarantees” from the companies in a trilateral deal including Sanofi, CD&R and the government. The official spoke on condition of anonymity in line with French government communications policy.

“Blocking the transaction would not have provided more guarantees,” the official said, noting that foreign buyers would bring “new investment capital” considered essential to developing France’s medicine manufacturing sector.

The official confirmed that the government will now perform investment screening on the takeover.

Armand and Industry Minister Marc Ferracci will present the details of the agreement reached with Sanofi and the American buyer on Monday.