(Bloomberg) -- Bank of America Corp. and BNP Paribas SA are on the verge of winning lead roles arranging Sanofi’s separation of its consumer-health business, according to people familiar with the matter, in one of the year’s most sought-after banking assignments. 

The French drugmaker has decided to hire the two banks, and probably will add one or two more to work on the transaction, said the people, asking not to be identified because the matter is confidential.

Sanofi said in October it planned to separate the business, which sells over-the-counter remedies including Gold Bond skin lotions and Phytoxil cough syrups, and that the most likely course would be through “a capital markets transaction” that would create a listed entity in France.

But the consumer unit also has drawn interest from some of the world’s largest buyout firms, including Advent International and Blackstone Inc., Bloomberg News reported in February. Bain Capital, CVC Capital Partners, EQT AB and KKR & Co. also have shown interest, and the unit could be valued at about $20 billion in any deal, people familiar with the matter said at the time. 

Asked about the banks, Sanofi said Monday that it doesn’t comment on rumors. “As announced in October 2023, Sanofi is reviewing potential separation scenarios,” the company said. “We are keeping all options open to maximize value creation for all our stakeholders.”

Sanofi reiterated that a transaction would occur at the earliest in the fourth quarter. 

A representative for Bank of America declined to comment and a BNP spokesperson didn’t have an immediate comment.

Final mandates have yet to be signed and the composition of the bank group could still change as deliberations are ongoing, the people said.

--With assistance from Pamela Barbaglia, Manuel Baigorri, Swetha Gopinath, Nicholas Comfort and Tim Loh.

(Updates to add Sanofi comment in fifth paragraph)

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