Fintech News App noted that as one of the most anticipated acquisitions of the year, banks and other lenders are preparing to provide over 10 billion euros (11.1 billion U.S. dollars) to support the acquisition of Sanofi's (SNY.US) Consumer Health division, the deal is currently in the final stages.

Insiders revealed that some core banks signed financing commitments for priority debt of 7.5 billion to 7.8 billion euros over the weekend to support the bid for this acquisition. They will also provide approximately 1.2 billion euros in revolving credit facilities.

Private credit institutions are also providing around 1.5 billion to 2 billion euros of subordinated debt for the acquisition.

New York-based acquisition company Clayton Dubilier & Rice is competing with French rival PAI Partners to bid for a subsidiary of Sanofi, with bids due by the end of this month. Two insiders stated that the former is advised by Citigroup and the latter is advised by JPMorgan. They added that the debt packages supporting CD&R and PAI's bids are quite similar, including leveraged loans and high yield bonds priced in euros and dollars to attract liquidity from institutional investors as much as possible.

While Sanofi has not commented on the financing, a representative reiterated that the company is considering possible options to divest its consumer business, including selling or going public, with a decision expected in the coming months.

Fintech News App reported in July that some acquirers suggested a valuation of up to 15 billion euros for the division.

Banks are eager to provide financing for leveraged acquisitions, with up to 15 banks competing for financing in the Sanofi acquisition case. Such trades are one of the most profitable businesses in the financial sector, especially after the hope of a decrease in debt costs finally began following the first interest rate cut by the Federal Reserve in 4 years.

But many people still vividly remember the risks: just two years ago, lending institutions were severely hit in supporting large-scale corporate acquisitions, ultimately burdened with hundreds of billions of dollars of 'hanging debt' that was difficult to shake off.

The total leverage ratio provided by banks is likely six times the profit of this sector, which is quite high by recent standards. If private credit is taken into account, this number will rise to 7.5 times. Just over a year ago, the debt plan arranged by banks to support acquisitions was about four times the profit.

Bloomberg News had previously reported that the New York-based acquisition company CD&R is also in discussions with banks, hoping to provide backup leverage to fund part of the equity checks. Backup leverage is a type of loan that acquisition companies can obtain to fund part of a specific company's equity investment.