Paris Approves €15 Billion Sale of Paracetamol Maker to US Fund with New Guarantees

The French government announced on Sunday its support for the sale of a Sanofi subsidiary that produces over-the-counter medications to American private equity firm CD&R. This backing comes after the government secured promises to maintain jobs, production, and management within France. 

Economy Minister Antoine Armand emphasized that the deal, valued at over €15 billion, is expected to have no adverse impact on the availability of essential medicines in France, including paracetamol, and will not result in job cuts. Additionally, Bpifrance, the public investment bank, will acquire shares in Opella, the Sanofi subsidiary involved in the sale, but will not hold a controlling stake.

The takeover has sparked significant controversy in France, with politicians from all parties expressing concerns that it might jeopardize manufacturing jobs and undermine Europe’s efforts to secure its supply chains for essential medicines. Despite these worries, the French government remains supportive of the deal. 

An official from the economy ministry informed reporters on Sunday night that Paris has secured “the highest possible level of guarantees” from the involved parties—Sanofi, CD&R, and the government—through a trilateral agreement. The official requested anonymity in accordance with French government communication protocols.

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

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

The official announced that the government will conduct an investment review of the takeover. On Monday, Economy Minister Antoine Armand and Industry Minister Marc Ferracci will outline the specifics of the agreement made with Sanofi and the American buyer.