France Considers Blocking Sanofi's $16B Sale Amid Political Concerns

In France, Sanofi is negotiating a potential sale of a 50% controlling stake in its consumer healthcare business, Opella, to U.S. private equity firm Clayton Dubilier & Rice (CD&R) for approximately $16 billion. The French government has expressed concerns regarding the sale, particularly focusing on healthcare sovereignty, job security, and local production. Industry Minister Marc Ferracci indicated that the government could legally oppose the sale if certain conditions are not met, reflecting heightened political sensitivity surrounding the deal. The opposition is fueled by fears that the sale could disrupt supply chains for essential medicines, especially amid ongoing shortages of critical products like insulin and vaccines. While CD&R is currently the leading bidder, a consortium led by French private equity group PAI has argued that their local ties would better serve national interests. However, PAI's financial limitations have hindered their competitiveness in the bidding process. The situation has become increasingly complex, with the French government emphasizing the importance of maintaining local production of key medications, such as Doliprane, to alleviate public concerns about the future of healthcare in the country.