Workers at Sanofi (SNY, Financial), organized by French unions CGT and CFDT, are set to strike in protest against the company's plan to sell its consumer health division, Opella, valued at approximately $16 billion. This action is expected to impact operations across France. Sanofi has entered negotiations with U.S. private equity firm Clayton Dubilier & Rice to sell a 50% stake in Opella. However, the potential deal has stirred political concerns, with fears of job cuts and loss of control over strategic assets, prompting the French government to demand assurances for retaining production of Doliprane, a popular pain reliever, in France. The government even hinted at a potential stake in the unit.
Sanofi emphasized that the options being considered would not reduce its industrial footprint in France, assuring the future of its factories and employees in the country. A Barclays report indicated that regulatory concerns have affected Sanofi's share price, increasing pressure on the company to reveal clear plans during its upcoming third-quarter earnings release.
France's Economy Minister Antoine Armand emphasized the need to ensure Doliprane production remains in France, suggesting government intervention might ensure the deal proceeds. Sanofi reiterated its commitment to maintaining a significant presence in France, retaining 50% capital in the consumer health business to ensure its long-term roots in the country.
Sanofi will need to balance meeting government demands and alleviating market concerns for the transaction to proceed smoothly, as highlighted by recent stock market reactions and regulatory scrutiny.
