France imposes penalties on Opella to retain jobs and production after takeover

The French government has taken a strong stance on Opella's future after its acquisition by American private equity firm Clayton, Dubilier & Rice (CD&R).

Concerns about Offshoring

The government is concerned about the potential offshoring of jobs and production, and has brokered an agreement with Sanofi and CD&R to ensure that Opella maintains its production facilities, workforce, and management structure in France.

Strict Penalties for Non-Compliance

The government has emphasized its commitment to enforcing strict penalties to ensure compliance with the agreement. Opella will face a €40 million penalty if it ceases production at two key factories, and a €100,000 fine for every economic-related layoff.

Preserving Relationships with French Suppliers

The agreement also includes provisions to preserve Opella's relationships with French suppliers, particularly in the production of paracetamol. Opella is required to source the active ingredient for its paracetamol from a new factory established by Seqens in 2026, with a penalty of €100 million for failure to comply.

Government Oversight and Investment

The French government plans to acquire shares in Opella worth up to €150 million to enhance its oversight of the company's operations. CD&R has pledged to invest €70 million in Opella's French operations over the next five years.

Mandate for Headquarters and R&D in France

The agreement also mandates that Opella's headquarters and research and development activities remain in France.

Aligning with Economic Strategies

The French government's actions reflect a global trend of prioritizing domestic production and safeguarding jobs in key industries. France's proactive stance in this case aligns with broader economic strategies aimed at fostering innovation, enhancing competitiveness, and ensuring self-sufficiency in critical sectors.

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