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Sanofi's sale of a controlling stake in its Opella unit to US buyout firm Clayton Dubilier & Rice for €16 billion has concluded a year-long takeover battle marked by intense rivalry. The French drugmaker faced fierce opposition from Paris-based PAI Partners, which attempted to disrupt the deal, leading to public disputes and political tensions.
Clayton Dubilier & Rice LLC has secured the Opella consumer health-care business from Sanofi for €16 billion ($17 billion), outbidding PAI Partners. However, achieving substantial returns will be challenging due to the need for product reconfiguration and the French government's significant involvement.
Sanofi's CEO, Paul Hudson, acknowledged "difficult discussions" with the French government regarding the sale of its OTC subsidiary, Opella, which markets Doliprane. The negotiations, under significant political pressure, resulted in commitments to maintain production in France and preserve jobs at local sites for at least five years. The French government will have a minor stake in Opella, ensuring governance without deterring foreign investment.
Emmanuel Macron's government is taking a 1%-2% stake in Sanofi SA's consumer-health unit Opella to facilitate a US private equity takeover, highlighting the challenges of investment in France. Despite the intervention, past government stakes have not prevented factory closures or job losses, raising concerns about their effectiveness in addressing public finance issues.
Sanofi is moving forward with a deal to sell a controlling 50% stake in its consumer health business, Opella, to Clayton Dubilier & Rice for approximately €16 billion ($17.3 billion). Bpifrance will hold a 2% minority stake, ensuring job security in France amid concerns over potential job losses. The transaction is expected to close by Q2 2025, allowing Sanofi to focus on its biopharmaceuticals.
Sanofi, Europe's leading pharmaceutical group, generates 70.6% of its sales from pharmaceutical products, with specialty medicines accounting for 59.3%. The company also focuses on human vaccines (17.4%) and consumer healthcare products (12%). By the end of 2023, Sanofi will operate 54 production sites globally, with significant sales in the United States (43%) and Europe (18.6%).
UBS has maintained a 'Buy' rating for Sanofi, setting a target price of 110 euros, following the anticipated sale of a majority stake in its consumer division, Opella. Analyst Jo Walton expressed approval for the increased clarity surrounding the divestiture, with Sanofi expecting cash proceeds in the high single-digit billion euro range.
UBS has maintained a "Buy" rating for Sanofi, setting a target price of 110 euros, following the announcement of the planned sale of a majority stake in its consumer division, Opella. Analyst Jo Walton expressed optimism about the increased clarity regarding the divestiture, which is expected to yield cash proceeds in the high single-digit billion range.
Bpifrance has acquired a 2% stake in Opella, a Sanofi subsidiary, for between 100 and 150 million euros, aiming to maintain influence despite lacking blocking power on the Board of Directors. The French government has secured guarantees for the preservation of production sites and R&D in France amid concerns over nationalization proposals. Bpifrance"s CEO argues against nationalization, warning it could lead to broader implications for the French chemical industry.
Sanofi is selling a 50% stake in its Opella subsidiary, which includes Doliprane, to the American private equity firm CD&R, known for investing in unlisted companies since 1978. With an enterprise value of approximately 16 billion euros, CD&R aims to enhance Opella's growth and establish it as a leader in consumer healthcare. Sanofi will retain about 48% ownership, while Bpifrance is expected to acquire a small stake.
Sanofi
Companies
| Symbol | SNY |
| Name | Sanofi |
| Currency | USD |
| Sector | Health Care |
| IndustryGroup | Pharmaceuticals, Biotechnology & Life Sciences |
| Industry | Pharmaceuticals |
| Market | NASDAQ Global Select |
| Country | France |
| State | |
| City | Paris |
| Zipcode | 75008 |
| Website | http://www.sanofi.com |
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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