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

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

THE Prime Minister’s axed Chief of Staff today misses a first big meeting in her new envoy role.

Sue Gray will skip the inaugural get-together in Edinburgh of the Council of Nations and Regions.

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She was forced to quit amid major infighting in Downing Street over the freebies scandal that has dogged the Government.

Ms Gray said that negative headlines around her role had risked her becoming a distraction.

She is taking a break before working with devolved administrations and regional leaders.

Earlier in the week, Gray dramatically quit as chief of staff after finding herself in the eye of a political storm.

Ms Gray said she didn’t want to become a “distraction” and would serve as the Prime Minister’s envoy for the regions and nations.

Her departure followed weeks of hostile briefings targeting her alleged micromanagement style, Labour’s perceived lack of readiness for Government, and her inability to prevent or manage the donations row.

The pressure on Ms Gray intensified last month when details of her £170,000 salary were leaked to the press.

The former Whitehall propriety and ethics chief said in a statement: “After leading the Labour party’s preparation for government and kickstarting work on our programme for change, I am looking forward to drawing on my experience to support the Prime Minister and the Cabinet to help deliver the government’s objectives across the nations and regions of the UK.

Ms Gray added: “Throughout my career my first interest has always been public service. However in recent weeks it has become clear to me that intense commentary around my position risked becoming a distraction to the Government’s vital work of change.

“It is for that reason I have chosen to stand aside, and I look forward to continuing to support the Prime Minister in my new role.”

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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.