PAI Partners Increases Bid for Sanofi's Opella Amidst Public Outcry
In a significant move, French investment fund PAI Partners has enhanced its acquisition offer for Opella, the Sanofi subsidiary that markets Doliprane, by an additional 200 million euros. This adjustment positions PAI as the leading bidder, both financially and socially, as the company competes against American fund CD&R. The updated bid comes in response to growing concerns from the public and political circles regarding the potential sale, particularly due to Doliprane's deep-rooted presence in French society.
The original offer from PAI Partners, supported by Abu Dhabi Avia, Singaporean GIC, and Canadian BCI, had matched CD&R's bid. However, Sanofi's preference for CD&R was based on strategic factors, notably the U.S. market's significance, which accounts for nearly 25% of Opella's sales. Sanofi has yet to comment on the latest developments, as negotiations continue.
Labor Unrest and Government Concerns
The announcement of Sanofi's negotiations with CD&R has triggered a strong reaction from labor unions, specifically the CFDT and CGT, who have initiated a renewable strike due to fears of job losses among Opella's 1,700 employees in France. The unions emphasize the potential impact on local production sites, including those in Compiègne and Lisieux, which are crucial for Doliprane's manufacturing. Sanofi's France President, Audrey Duval, has attempted to alleviate concerns by assuring employees of job sustainability and the continuation of production at these sites.
The French government is also closely monitoring the situation, demanding assurances from all parties involved regarding employment security, the industrial footprint, and the future location of Opella's headquarters and R&D operations. The government has not ruled out intervening to block the transaction if necessary, reflecting the heightened sensitivity surrounding the sale of such a beloved brand.
The Future of Doliprane and Opella
As the bidding war intensifies, the future of Doliprane hangs in the balance, with public sentiment strongly favoring a local ownership structure. The outcome of this acquisition could have lasting implications not only for the employees of Opella but also for the broader pharmaceutical landscape in France. The next steps in this negotiation process will be closely watched by stakeholders, including the government, unions, and consumers who hold a deep attachment to the Doliprane brand.
