The French government has warned a US private equity firm buying the consumer healthcare arm of the drugmaker Sanofi that it faces penalties of more than €100m if it does not keep production and jobs in France, reports The Guardian.
Sanofi is splitting off Opella, which makes the paracetamol brand Doliprane, the laxative Dulcolax and other over-the-counter medicines and vitamins. However, news of talks with the New York-based Clayton, Dubilier & Rice on 11 October prompted fears about French jobs and the loss of control to a foreign company.
On Monday, Sanofi announced that it had entered exclusive negotiations with CD&R for the sale of a 50% stake in the consumer business, valuing it at €16bn. However, France’s state-owned investment bank, Bpifrance, will also take a 2% stake and a seat on Opella’s board.
France’s economy minister, Antoine Armand, said that under a trilateral agreement thrashed out with Sanofi and CD&R over the weekend, Opella’s new American owners will have to keep key factories, research, management and its 1,700 workforce in France. CD&R pledged to invest €70m in France over the next five years.
Read more of this report from The Guardian.
See Mediapart's background to the story here.