French trade unions have organized workers from Sanofi (SNY.US) to plan a strike starting from Thursday to protest the company's intention to sell its consumer health division, Opella, in a deal valued at approximately $16 billion. The strike action, jointly initiated by the General Confederation of Labor (CGT) and the French Democratic Confederation of Labor (CFDT), is expected to cover the entire territory of France. Previously, Sanofi had begun negotiations with the American private equity firm Clayton, Dubilier & Rice to sell a 50% controlling stake in Opella. However, due to concerns about potential layoffs and the relinquishment of control over strategic assets, the deal has become a political issue. The French government has demanded guarantees that the production of Doliprane remains in France and has even suggested the possibility of taking a stake in the division.
Sanofi stated in a declaration that the options under consideration will not reduce its industrial footprint in France and emphasized that the future of its factories and employees in France is secured and crucial to its growth. The statement also pointed out that Sanofi's decision to retain 50% of the capital ensures that these businesses will be deeply rooted in France for the long term.
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Barclays reported on Wednesday that regulatory concerns over the sale have impacted Sanofi's stock price this week, and the company will face pressure to announce a clear plan when it releases its third-quarter results next week. This indicates that Sanofi needs to balance meeting government demands and alleviating market concerns to ensure the smooth progress of the transaction.
It is understood that Fabien Maley, a representative of the General Confederation of Labor, stated that the strike will begin at 5 PM (Central European Time) on Thursday, when workers will start their shifts. Sanofi is well-known for producing the widely popular Doliprane painkiller, but politicians and critics are concerned that layoffs may occur and the company may relinquish control over strategic assets as the transaction proceeds, contradicting the government's commitment to restore self-sufficiency in healthcare during the COVID-19 pandemic.
Antoine Armand, the French Minister of Economy, stated that to ensure the production of Doliprane remains in France, the government needs to ensure that the sale of Sanofi's consumer health division can continue, even hinting that the government may take a stake in the division. He clearly stated: "I can tell you very clearly that nothing is impossible, and nothing is ruled out."
In response, Sanofi declared that the options under consideration will not reduce its industrial footprint in France and emphasized the importance and security of the future of its factories and employees in France for its growth. The declaration also noted that Sanofi's decision to retain 50% of the capital guarantees that these businesses will be deeply rooted in France for the long term.
