Private Equity’s Sanofi Deal Breaches French Wall: Chris Hughes

A historic French leveraged buyout should be a moment of unambiguous celebration. Instead, it risks becoming a political football.

Sanofi SA nudged the auction for its consumer health business nearer to consummation on Friday, agreeing exclusive talks to sell a “50% controlling stake” to funds run by US buyout firm Clayton Dubilier & Rice LLC. The Paris-based pharmaceuticals giant favored CD&R’s proposal, valuing the division at about €15 billion ($16 billion), over a reportedly similar-priced bid from French buyout peer PAI Partners. Doing so sends a France-hearts-foreign-capital message and waves a red cape at domestic opponents to overseas takeovers.

Carving out the business so ...