France's PAI Partners Ups Bid for Sanofi's Consumer Health Division As French Government Hints Possible Regulatory Block

Last week, Sanofi SA SNY said it is negotiating with Clayton Dubilier & Rice (CD&R) to potentially sell a 50% controlling stake in Opella, its consumer healthcare business.

In October 2023, Sanofi announced its plans to spin off its consumer healthcare business as the French pharmaceutical company outlined its strategic update to increase investment in its drug-development pipeline and cut costs.

France’s government has hinted at the possibility of blocking the sale of Sanofi’s consumer pharmaceuticals division to CD&R, citing concerns over employment and national healthcare interests.

The French government’s requirements, expressed earlier in the sale process, have taken on a heightened political tone since Sanofi announced CD&R’s bid over a consortium led by French private equity group PAI Partners.

CD&R and PAI Partners made separate bids for Sanofi’s consumer health division.

On Thursday, PAI Partners raised its bid for Sanofi’s consumer health division by around 200 million euros ($217.12 million). Reuters report said that though the revised offer’s price remains undisclosed, the offer is reportedly valid until Sunday night.

Also Read: Sanofi Sells Global Rights To Rare Autoimmune Drug Enjaymo For $825M Upfront To Italian Firm Recordati.

Sanofi told Reuters that all candidates had the same opportunity to submit their best bids before the deadline, and it was unexpected that PAI would present an improved offer outside the agreed timeframe.

While CD&R has emerged as the frontrunner, PAI and its partners, including Singapore’s GIC and the Abu Dhabi Investment Authority, have argued that their French roots could better align with the country’s interests.

However, PAI’s lower financial capacity compared to CD&R, which raised a record 26 billion euros last year, has put it at a disadvantage in the bidding process.

Price Action: SNY stock was down 0.17% at $54.77 at the last check Friday.

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