Sanofi (SNY.US) is on strike! The $16 billion Opella sale led to the intervention of the French government

The Zhitong Finance App learned that French trade unions organized workers at SNY.US (SNY.US) to go on strike starting Thursday to protest the company's intention to sell Opella, its consumer health division. The deal is worth about 16 billion US dollars. The strike was jointly initiated by the French Federation of Trade Unions (CGT) and the Confederation of French Steel Workers (CFDT) and is expected to cover the whole of France. Previously, Sanofi had begun negotiations with American private equity firm Clayton Dubilier & Rice to sell 50% of Opella's controlling interest. However, the deal has become a political issue due to concerns about potential layoffs and relinquishment of control over strategic assets, with the French government demanding guarantees that Doliprane's production remains in France, and has even proposed a possible stake in the sector. Sanofi said in a statement 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 secure. According to the Barclays report, the concerns of regulators have had an impact on Sanofi's stock price, and the company will face pressure to announce a clear plan when announcing third-quarter results next week.

According to information, Fabian Marais, representative of the French Federation of Trade Unions, said that the strike will begin at 5 p.m. (Central European Time) on Thursday, and workers will start working shifts at that time. Sanofi is famous for producing the popular Doliprane pain reliever, but politicians and critics worry that as the deal progresses, layoffs may occur and the company may relinquish control over strategic assets, contrary to the government's promise to restore health care self-sufficiency during the COVID-19 pandemic.

French Economy Minister Antoine Armand said that in order to ensure that Doliprane production remains in France, the government needs to ensure that sales of Sanofi's consumer health department can continue, and even hinted that the government may take a stake in the sector. He made it clear: “I can tell you very clearly that nothing is impossible and nothing is left out.”

In a statement, Sanofi responded that the options being considered would not reduce its industrial footprint in France, and emphasized that the future of its factories and employees in France is critical to its growth, so it is guaranteed. The statement also stated that Sanofi decided to keep 50% of its capital, which guarantees that these businesses will be rooted in France for a long time.

Barclays mentioned in Wednesday's report that regulators' concerns about this sale impacted Sanofi's stock price this week, and the company will be under pressure to announce a clear plan when announcing the third quarter results next week. This shows that Sanofi needs to balance meeting government requirements and mitigating market concerns to ensure the smooth running of transactions.