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An offer from US private equity firm Clayton, Dubilier & Rice has beaten rivals, pursuing French pharmaceutical company Sanofi’s consumer healthcare division, in what is set to be the largest European healthcare deal this year, according to five people with direct knowledge of the process.

The American group on Thursday edged out a submission from a consortium led by French private equity firm PAI as it nears a deal with the French seller. Negotiations between Sanofi and CD&R will now continue, the people said. A deal could be reached within days but is not yet finalised.

CD&R’s offer values the business, which makes over-the-counter pain management and allergy medications, such as Doliprane and Allegra, at €15.5bn. Sanofi would keep a stake of about 50 per cent in the business with a view to selling it in the next few years, the people said.

Sanofi did not immediately respond to a request for comment. CD&R and PAI declined to comment. The offer was first reported by French newspaper Les Echos.

A transaction would be the latest of several sales of consumer divisions by pharmaceutical companies, as large groups in the sector seek to dispose of steady but low-earning businesses to focus their resources on the riskier but more lucrative field of drug development.

Sanofi has been exploring options for a sale or a potential float since it announced plans to separate the division a year ago. The Opella consumer division accounts for a tenth of the group’s total sales.

Chief executive Paul Hudson told the Financial Times last year that a future as a publicly listed entity was “the most likely path” for the division, but Sanofi seems to now be moving towards a private equity-led takeover.

In 2021, GSK and Pfizer listed their joint-venture consumer healthcare business Haleon in London, while Johnson & Johnson of the US separated off its consumer company Kenvue in 2022.

In keeping a large stake in Opella, Sanofi would seek to benefit from the reliable earnings it offers. GSK and Pfizer also both maintained large stakes in Haleon on listing, which they have since sold down.

Hudson will now focus on improving the company’s research and development output. The executive took investors by surprise last October when he decided to scrap Sanofi’s margin target for 2025 and unveiled plans to spend an additional €2bn on research in 2024 and 2025, leading to a 19 per cent hit to the company’s share price.

Sanofi is heavily reliant on income from its blockbuster asthma and allergy treatment Dupixent; developed by US drugmaker Regeneron, the drug accounted for almost a quarter of sales in 2023, but will lose patent protection around 2031.

Hudson has outlined 12 potential blockbuster candidates to shareholders in a bid to convince them that he can deliver on the company’s R&D ambitions.

Reporting by Ian Johnston, Adrienne Klasa, Ivan Levingston, Oliver Barnes and Alexandra Heal

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Britain’s Labour government came to power facing a balancing act between its manifesto commitment to offer a “new deal for working people”, and fulfilling its pledge to be pro-growth and pro-business. Employers have sounded alarms over the impact of its landmark employment rights bill; the Federation of Small Businesses called it “rushed, chaotic and poorly planned”. But by moderating some promises and committing to further consultation, Labour has shown itself ready to listen to business — even at risk of irking its union allies. It should continue to heed corporate concerns as it thrashes out how the bill will be implemented. Above all, it must not undermine the priority of boosting UK growth, productivity and competitiveness in its quest to bolster workers’ rights.

The government’s biggest concession is to soften the day-one protection for employees against unfair dismissal that has been a centrepiece of its plans. Companies had worried they could face costly employment tribunals simply for dismissing new hires who proved unsuitable — a potential disincentive to take on workers, especially for small business. There will now be a statutory probation period during which employers need follow only a “lighter-touch” dismissals process than the more onerous procedure that currently kicks in after two years of employment. The probation period is to be consulted on, but ministers have signalled they favour nine months — an apparent victory for pro-business voices in the cabinet.

The bill will deliver day-one rights to parental, paternity and bereavement leave for millions of workers, as Labour had promised. Employers will have to pay statutory sick pay from the first day of illness, rather than after three days as now. But some promised steps are tempered or postponed. A default right to flexible working will apply only where practical. A “right to disconnect”, barring employers from contacting staff outside hours, is sensibly now expected to be addressed separately through a statutory code of practice.

Some abusive practices will rightly be curbed, including the “exploitative” use of zero-hours contracts. More than 1mn people on such arrangements will gain new rights to a contract reflecting a pattern of regular hours they build up over time — though workers, some of whom prefer zero hours, do not have to accept. Loopholes that businesses have used to fire workers then rehire them on worse pay or terms will be closed, except where companies can show they are at genuine risk of failing. Less positive is the repeal of Conservative legislation designed to preserve minimum levels of public services during strikes.

Many measures are subject to further consultation over secondary legislation required to implement them; some will not take effect before 2026. That means workers will wait two years for some rights, and businesses face further uncertainty. But it allows time to hammer out the balance between employees’ and employers’ rights, and iron out wrinkles in a bill ministers scurried to publish within a 100-day deadline.

Striking the right balance on employment rights is, however, only one part of a broader picture. Whether Labour lives up to its pro-business billing will depend, too, on avoiding burdening companies with excessive taxes in the Budget, finding money to invest in infrastructure, training and skills, and coming up with a credible industrial strategy. After a rocky start, the government will hope publishing the employment bill, on top of efforts to get a grip on its Downing Street operation this week, marks a reset. Business, much of which gave Labour the benefit of the doubt due to frustration with the Conservatives, still needs some convincing about its growth credentials.

KRISPY Kreme is launching a special range of Halloween doughnuts inspired by a beloved movie.

The four new flavours honour the 40th anniversary of a 1984 classic film and are available in select stores now.

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The doughnuts were created to celebrate four decades since the release of Ghostbusters.

The 1984 classic, featuring Bill Murray and Sigourney Weaver, has been lauded as one of the most iconic blockbusters of the 1980s.

The all-new Krispy Kreme x Ghostbusters Collection consists of four fresh flavours inspired by the movie, to get you in a spooky mood.

For a limited time at participating Krispy Kreme shops, guests can enjoy the new doughnuts in a limited-edition custom Ghostbusters dozens box.

The new treats include:

• Ghostbusters (from £3.15) – an Original Glazed dipped in chocolatey icing, topped with dark biscuit crumb, silver sugar and a No Ghost logo plaque.
• Slimer (from £3.15) –filled with green lemon filling, dipped in purple icing, piped with green icing and a Slimer plaque.
• Ecto-Sprinkles (Feature Pack exclusive) – an Original Glazed dipped in orange icing and half rolled in Halloween sprinkles.
• Spooky Sprinkles (from £2.65)  – Original Glazed dipped in chocolatey icing and topped with Halloween sprinkles.

Dave Skena, Global Chief Brand Officer for Krispy Kreme, said: “Yes it’s true, these treats are no trick.

“When it comes to Halloween this year, you know who to call.

“Krispy Kreme is the gatekeeper to Halloween sweetness and Sony Pictures Consumer Products is the key master to bring spooky-sweet Ghostbusters doughnuts to our fans this year.

“You’re welcome, Gozer.”

Krispy Kreme and Ghostbusters fans can also get a limited time Krispy Kreme dozen (from £ 25.95) featuring the Ghostbusters, Slimer, Ecto-Sprinkles and Original Glazed Doughnut.

The dozen are delivered fresh daily to all Krispy Kreme shops, selected grocery shops, and are also available for delivery straight to your door via nationwide delivery.

For more information about the Halloween range, please visit https://www.krispykreme.co.uk.

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Private equity groups including Platinum Equity, Clearlake Capital and Apollo Global are struggling with the hefty debt loads of their holdings, Moody’s said on Thursday.

In a new analysis, the agency indicated that recent increases in interest rates have put the assets held by some of the world US’s fastest-growing PE groups under strain.

It said more than half of the companies in the portfolios of Platinum and Clearlake, both Los Angeles-based, are at heightened risk of default, with a rating of B3 or below.

Moody’s said the holdings of Clearlake, a co-owner of Chelsea Football Club, and Platinum had the highest leverage ratios of the firms it surveyed, while others had begun to reduce their debt loads.

The two groups have attracted tens of billions of dollars in recent years from top institutional investors in North America, transforming them from niche middle-market firms into dealmaking powerhouses.

While Clearlake grew from about $1bn in assets in 2008 to $90bn today, the size of Platinum’s funds has nearly quintupled during that time to almost $50bn in assets.

The report found that overall in the two years to August, portfolio companies of the top dozen buyout groups defaulted at a rate of 14.3 per cent, a figure twice as high as that for companies not backed by private equity.

Private capital powerhouses including Apollo Global and Ares Management have had buyouts suffer. Nearly a quarter of the Apollo-owned companies that Moody’s rates have defaulted since 2022, while 47 per cent of Ares-backed companies they follow are distressed, the agency said.

Platinum did not immediately respond to requests for comment. Representatives of Apollo and Clearlake disputed Moody’s definition of a default and said it was overly broad.

A representative for Ares Management declined to comment.

The industry has been hit by the swiftest interest rate increases in a generation, which brought down valuations that had soared during the pandemic and pummelled the balance sheets of thousands of highly leveraged private equity-backed companies.

Between January 2022 and August of this year, more than a third of the Platinum-owned companies rated by Moody’s underwent restructuring or a debt default. Seventeen per cent of Clearlake’s portfolio suffered the same outcome.

Clearlake also became an active user of so-called continuation funds, where the group in effect sells the company to itself and other investors — novel deals that will be tested by higher rates for the first time.

Earlier this year, car parts supplier Wheel Pros, one of Clearlake’s largest fund-to-fund deals, went bankrupt. Moody’s report said it considers similar deals by the group, including for software companies like Symplr, as distressed.

The fast-growing market for private credit has impeded rating agencies’ task, since such loans are more difficult to track than more traditional forms of borrowing.

As a result of the increased difficulty of analysis, buyout groups including Vista Equity, Carlyle and Thoma Bravo — historically among Moody’s most-frequently rated companies in the US — have now “nearly disappeared”, the agency said.

Private credit can “mask some issues” in a private equity firm’s portfolio, Julia Chursin, vice-president at Moody’s, said in an interview. “There could be some opaque credit risk which is absorbed by the private credit sector, although they claim they only pick good ones.”

FANCY getting yourself an early Christmas present? Then apply for a festive job.

With the big day just ten weeks away, employers are gearing up to hire almost a quarter of a million seasonal staff.

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And many temporary jobs can become permanent if you show bosses you are a good fit for them, so you could launch into a new career.

The number of jobs is up on last year and many roles offer perks including staff discounts on your shopping.

This week and next, we will bring you the brightest and best Christmas opportunities. On this page there are more than 70,000 jobs up for grabs.

One big festive employer is Sainsbury’s with 18,000 jobs in stores, delivery and warehouses plus a further 2,000 at Argos.

The retailer offers free food during shifts and a ten per cent discount at Sainsbury’s and Argos for eligible colleagues.

Prerana Issar, chief people officer at Sainsbury’s said: “Joining us during this busy time is a fantastic opportunity to meet great people and acquire skills that will stay with you long after the festive season.”

Apply at ­sainsburys.jobs/christmas.

Another big Christmas recruiter is M&S, with 11,000 jobs, up 1,000 on last year. See jobs.marksandspencer.com/christmas.

Superdrug has 1,000 sales adviser roles showing at Superdrug.jobs and Poundland is hiring 1,000 Christmas helpers at poundlandcareers.co.uk.

Freemans.com has 20 vacancies for warehouse staff sending Christmas orders out around the UK.

After working in care through the pandemic, Alison Heatley joined Freemans as a festive temp and now has a permanent role with the company.

Alison, 48, from Bradford said: “If you are thinking about applying for a Christmas job, just do it.

“You have nothing to lose and lots to gain.

“I made myself available for work and showed that I wanted to learn new roles and it definitely helped with landing a permanent job at Freemans.

“I feel that all my efforts at work have paid off and I am so glad I made the change.”

Apply at mach.co.uk

Currys has 1,000 vacancies in store plus 100 permanent 7.5 tonne delivery & install driver jobs. Apply at curryscareers.co.uk.

At Iceland, there are jobs for 750 delivery drivers and more than 1,000 retail assistants. For details see icelandcareers.co.uk.

Photo and personalised gift chain Max Spielmann, which is part of the Timpson group, is taking on 200 staff. See timpson.co.uk/about/careers-at-timpson.

The Range is taking on around ten temp staff for each store, with 2,000 needed nationwide. See therange.co.uk/careers.

GET AHEAD OF GAME IN KIDS’ SHOP

BRIMMING with elf confidence? Then use your skills to spread some Christmas cheer by working in a toy shop.

The Entertainer has launched its biggest-ever festive recruitment drive with more than 1,000 jobs available nationally.

Many employees who joined The Entertainer on seasonal contracts have stayed with the business and progressed into store, field and head office and area manager roles with the retailer.

CEO Andrew Murphy said: “We need enthusiastic people with a love of toys to help sprinkle some Christmas magic in all our stores for the festive period.”

Visit thetoyshop.com.

HOW TO BAG SEASONAL POST

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WITH the annual festive season recruitment push in full swing, what’s the best way to secure a job?

Here Anne Brewster, from Jobcentre Plus in Grimsby, shares her expert advice.

• BE PROACTIVE: The earlier you look, the best chance you have of securing a ­seasonal role. Speak to your Jobcentre work coach about what might be the best fit or visit gov.uk/find-a-job.
• RESEARCH THOROUGHLY: Before you even secure an interview, make sure you research the employer you are applying to. The more information you have at your fingertips, the better you will present.
• EXPLORE JOB HELP: Use the Department for Work and Pension’s dedicated website at ­jobhelp.campaign.gov.uk. It is home to all types of ­support, including information about extra help that might be on offer such as training courses plus tips on job-seeking.
• TAILOR YOUR APPLICATION: Adapt your CV or personal statement for the role you are applying for. Submitting a bespoke application gives you the opportunity to highlight what ­experience and skills you already have that ­mirror what the vacancy needs.
• LOOK TO THE LONGER TERM: Treat any role as though it was a permanent job. Learn new skills and show willing.

SMYTHS TOYS also has 1,000 vacancies for sales assistants.

A spokeswoman said: “We pride ourselves on developing employees skills and knowledge and there are great career progression opportunities for those who want them.”

See smythstoys.com/uk/en-gb/careers to find a job.

WHAT makes a great English village? Quaint thatched houses, a couple of cosy pubs and a ties to a huge national scandal that we celebrate centuries on?

Well if that’s the case, Dunchurch in Warwickshire has made the cut – and it’s just a short five-minute drive from Draycote Water, a huge sailing reservoir.

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When telling your kids about Guy Fawkes this November, the tiny village of Dunchurch would be lucky to even make it as a footnote, with the focus on places like the House of Lords and Lewes.

But the village pub, now known as Guy Fawkes House, played a significant role in the events of that day 419 year ago.

While the British soldier never stepped foot in the building, it is tied to the Gunpowder Plot.

Nowadays, Guy Fawkes House is a private home but back on November 5, 1605, it was the Old Lion Inn – a pub where several of the conspirators met to wait for news about the destruction of Westminster.

When Guy Fawkes was arrested, their plan to seize Princess Elizabeth from nearby Coombe Abbey was swiftly abandoned, leading to their defeat on November 8, 1605.

While visitors can’t enter the building, they can admire the blue plaque on the outside of the house that commemorates its ties to the Gunpowder Plot.

With just over 4,000 residents, there are just two pubs in the village, including the Dun Cow where the Gunpowder plotters also stayed.

The country pub is also named after a local myth, the Dun Cow was said to be a “monstrous” beast that provided milk to the locals until a witch made it go on a murderous rampage.

The story ends with the beast being slain by Guy, the Earl of Warwick.

Dunchurch’s other pub is the Green Man with other restaurants including Malancha and the Cinnamon Lounge.

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Further afield Draycote Water, a huge sailing reservoir is just a five-minute drive from Dunchurch.

The 240-hectare reservoir and country park draws its water from the River Leam.

Draycote Water is a popular spot for watersports, with activities like sailing, paddleboarding, windsurfing and powerboating all taking place on the reservoir.

For those who don’t want to go on the water, a flat five-mile pavement snakes around the circumference of the reservoir.

Parking charges apply and dogs are not permitted at Draycote Water.

Visitors who want to stay overnight in Dunchurch can book a room at the Dun Cow where prices start from £80 per night.

Dunchurch is a seven-minute drive from Rugby, and it’s also by bus with journeys taking just 10 minutes from the Warwickshire town.

What’s Rugby like?

The market town of Rugby is known for its ties to the sport of Rugby, with the game believed to have been invented gun in 1823 at Rugby School.

Rugby School was established in 1567 by Lawrence Sheriff, a wealthy grocer and courtier to Queen Elizabeth I.

Nowadays, tours of Rugby School take place for anyone who wants to explore more of the town’s history.

Other attractions include The Webb Ellis Rugby Football Museum, St. Andrew’s Church and Rugby Art Gallery and Museum.

Another tiny village in the UK has been compared to a retro 1940s film set.

And an abandoned village in England only opens to tourists once a year.

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