Sanofi (EPA: SAN) and private equity firm Advent International have entered into exclusive negotiations to discuss the acquisition of Sanofi's European generics business Zentiva for EUR1.9m, the pharmaceutical company announced on Wednesday.

Advent is a global investor that has more than 25 years of experience investing in the healthcare sector. It aims to invest in Zentiva to create a new, independent generics leader in Europe.

Advent will work with Sanofi to form the new independent operation and will support the Zentiva management team to invest in the company's operations, production facilities, and R&D pipeline.

Subject to the finalisation of definitive agreements, completion of the appropriate social processes, and approval from the relevant regulatory authorities, the transaction is expected to close by the end of 2018.

Advent's offer is firm, binding, and fully financed.