Sanofi is in discussions with the French government to address concerns officials raised about a potential sale of a controlling stake in the company's consumer health business, Opella, to private-equity firm Clayton Dubilier & Rice.
The French pharmaceutical company confirmed last week that it was in negotiations with CD&R over a potential sale of a 50% controlling stake in Opella, sparking a political debate in France.
French Finance Minister Antoine Armand told the country's National Assembly on Tuesday that the government wouldn't rule out taking a stake in Opella through state-owned investment bank Banque Publique d'Investissement and seeking representation on its board of directors.
The French government is seeking commitments from Sanofi that Opella would maintain employment, production and research-and-development activities in the country and could block a deal if those requirements aren't met, the Ministry of Economics, Finance and Industrial and Digital Sovereignty said.
French unions CFDT and CGT also voiced their opposition to the deal, and CGT called on Sanofi workers to strike starting on Thursday.
Sanofi said it is in discussions with the government and that it would retain 50% stake in Opella that would give it veto rights on strategic decisions.
"We are the guarantee of Opella's French roots," a Sanofi spokesman said.
Opella is home to over-the-counter medicines such as Doliprane, a popular painkiller in France.
A potential stake sale of an Opella stake to CD&R wouldn't affect the production of Doliprane nor jobs at the business, the Sanofi spokesman said.
Sanofi said negotiations with CD&R aren't exclusive yet.
CD&R declined to comment.
The company could still pursue an IPO of the business or spin it off and distribute shares to shareholders, Barclays analysts wrote in a research note.
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