French pharamceutical giant Sanofi has confirmed plans to sell a controlling stake in its over-the-counter unit to a US investment fund, after employment and investment guarantees relieved political controversy.
According to Sanofi, the sale of a controlling 50 percent stake in Opella to Clayton Dubilier & Rice (CD&R) has valued the maker of France's leading painkiller, Doliprane, at €16 billion.
"Sanofi and CD&R announce today a plan to join forces to fuel Opella's ambitions as a French-headquartered, global consumer healthcare champion," it said Monday, after French officials approved the deal over the weekend.
French Economy Minister Antoine Armand said on Sunday: "Our demands on employment, production and investment will be respected".
The proposed sale had turned into a major political issue in France.
The coordinator of the hard-left France Unbowed party Manuel Bompard has called for the sale if Sanofi's Opella subsidiary to be blocked.
Memories are still fresh of shortages of the painkiller during the Covid pandemic and government pledges to boost domestic pharmaceutical production.
Trade unions had also expressed concern it would put 1,700 jobs in France at risk.
'Growth strategy'
For its part, Sanofi insisted the sale would help Opella expand by bringing in a partner willing to invest in a market that has more in common with the consumer goods market than pure pharmaceutical drugs.
Opella employs over 11,000 workers and operates in 100 countries.
Sanofi said it is the third-largest business worldwide in the market for over-the-counter medicines, vitamins and supplements.
Doliprane is the brand under which Opella sells paracetamol, a non-opioid analgesic to ease mild to moderate pain and fever.
It also owns the antihistamine brand Allegra and the laxative Dulcolax.
"Together, CD&R and Sanofi will support Opella's growth strategy as a pure-play, global and fast-moving consumer healthcare company," said Sanofi, which will focus on innovative treatments and vaccines going forward.
French public investment bank Bpifrance is expected to take a two-percent stake in Opella at the end of the exclusive sale talks between Sanofi and CD&R.
The deal, however, is not expected to go through before the second quarter of next year.
(With newswires)
