French minister says block to Sanofi deal is still 'on the table'

The possibility that France may block a deal between Sanofi and the US private equity firm CD&R is an option that is "absolutely on the table".

That's according to France's industry minister Marc Ferracci, who made the comments to France Inter radio on Tuesday.

"If commitments aren’t accepted, our laws give us the option to block the sale," said Ferracci.

"We have two extremely clear priorities. The first is the health of the French people, so the secure supply of medicines. The second is to uphold what we call France's industrial footprint, keeping jobs and also research and development in France."

Sanofi announced last Friday that it was negotiating a partial sale of its consumer health subsidiary, Opella, for around €15bn.

Under the proposed terms, Sanofi would retain a 50% stake, while the other half could go to private equity firm CD&R.

Opposition across the political spectrum

Opella is best known for its branded paracetamol, Doliprane - France's best sold drug.

Opponents of the deal with CD&R are concerned that the sale will not only jeopardise French jobs but also leave the country vulnerable to medicine shortages - as experienced during the pandemic.

"The piecemeal sale of France continues," wrote far-right president of the National Rally party, Jordan Bardella, on X.

"The risks to our health sovereignty and to employment are significant: it would be unthinkable for the state to let this happen," he added.

On the other end of the political spectrum, the head of France's Communist party, Fabien Roussel, branded the sale as "shameful".

A group of around 60 centrist and conservative lawmakers, meanwhile, sent an open letter to France's finance minister Antoine Armand on Friday, calling for a state intervention in the sale.

Government reassurances

Visiting Sanofi's paracetamol factory in Lisieux on Friday, Armand told reporters that the state would be launching an investment screening into the planned sale.

One option, he has suggested, is that the government could buy up a stake in Opella and thus influence decisions as a shareholder.

Some have also questioned why Sanofi has not put more consideration into an alternative offer by PAI, a French private equity group.

While this would alleviate some concerns over sovereignty, PAI has made the offer as part of a consortium.

Within this consortium, it is a minority party among foreign investors such as Singapore's GIC and the Abu Dhabi Investment Authority.

• US private equity firm set to win Sanofi's consumer health division
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Will production stay in France?

Asked about the potential deal on Monday, French President Emmanuel Macron implied that production would remain in France despite the presence of a foreign stakeholder.

"I would make a distinction between two things: activity in France and capital ownership," he argued. 

"On capital ownership, the government has the instruments to guarantee that France is protected. And so it's the government's job to look at that."

In 2020, Macron underlined the importance of bringing paracetamol production back to France, as Sanofi still sources the active ingredient in paracetamol from Asia.

In 2026, the French pharmaceutical company Seqens is hoping to start manufacturing this ingredient on home soil.

Even so, some are concerned that France may double down on its commitments to onshore medicine production.

"Since the Covid-19 pandemic, discussions in France have been favourable to the concept of reshoring and investing in the EU's manufacturing capacity," Elizabeth Kuiper, associate director and head of the social Europe and well-being programme at the European Policy Centre, told Euronews.

"From an EU perspective, the Commission has stressed the importance of reinforcing global supply chains of medicines based on diversification and the need for economic security with the principles of open markets."

She added that, in her opinion: "The French government seems to be focusing more on the conditions of the deal rather than blocking the deal".

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