For the first six months of 2016, France was ranked third behind the US and China both in terms of volume and value for annouced M&A deals with 1,268 deals worth US$63.7 billion. Acquisitions of French companies made by foreign groups decreased by 24 per cent to reach US$33.8 billion since the beginning of 2016, whereas acquisitions made by Frecnh companies abroad have more than doubled over the same period, to reach US$40.8 billion.
Major groups continue to refocus their activity, by gaining market shares at international level and looking for synergies with complementary activities, but also by selling subsidiaries with a non-core activity. This startegy seems to be perferred to opportunistic transactions.
Overall, M&A activity continues to be aided by favourable conditions for external growth.
This article was authored by Hubert Segain, Partner, Paris and Noémie Laurin, Avocat, Paris in GTDT: Market Intelligence – M&A 2017.