FRANCE Trends and Developments Contributed by: Hugo Sanchez de la Espada, Robin Gaulier, Magalie Dansac Le Clerc and Aurore Cormary, Baker McKenzie Paris
AI data centres across the country. Beyond infrastruc - ture, France hosts some of Europe’s most prominent AI players, most notably Mistral AI, which is now val - ued at around EUR11.7 billion following its 2025 fun - draising rounds and stands as a key challenger to US and Chinese leaders in generative AI. France’s appeal also extends well beyond technology and innovation, as illustrated by its tourism sector: in 2025, France confirmed its position as the world’s lead - ing tourist destination, welcoming a record 102 million international visitors and generating EUR77.5 billion in international tourism receipts (up 9% year-on-year), with travel and tourism contributing approximately 9.1% of national GDP. In 2026, the French tourism market remains robust, underpinned by a structural shift in consumer preferences towards proximity tour - ism, in a context of heightened uncertainty and deep changes in consumption patterns, particularly in the travel sector where customers are increasingly looking for holidays that are closer to home, more responsible and more meaningful. This trend supports domestic and local tourism. More generally, the continued attractiveness of France is also reflected in the dynamism of its M&A market, which started 2026 on a strong note, with the value of announced transactions involving a French party up 40% year-on-year in the first quarter of 2026, driven by a sharp rebound in outbound activity and a series of large strategic deals across the energy, health - care, luxury and retail sectors. Notable deals include Engie’s USD21.3 billion offer for UK Power Networks, Servier’s USD2 billion acquisition of Day One Biophar - maceuticals and Kering’s sale of its beauty division to L’Oréal for EUR4 billion. Industrial players, supported by solid balance sheets, are now leading the deal flow in a market where private equity firms remain cautious due to elevated portfolio valuations and tighter financ - ing conditions. Setting Up a Business in France: Legal Framework and Corporate Structures France offers a wide range of corporate forms to accommodate different business needs. The most commonly used vehicle for domestic and foreign investors is the simplified stock corporation ( société par actions simplifiée – SAS), which is particularly
valued for its flexibility and streamlined governance framework. French corporate law is well integrated within the broader European legal framework and provides effi - cient mechanisms for implementing domestic and cross-border reorganisations, including mergers, demergers, corporate conversions and migrations. Cross-border transactions can generally be carried out both within the European Union and, subject to applicable reciprocity requirements and recognition principles, with non-EU jurisdictions. Compared with a number of other European jurisdic - tions, the transfer of shares or businesses in France is generally straightforward and does not typically require the involvement of a notary, resulting in greater transactional efficiency and reduced formality. From an administrative perspective, the ongoing digitalisation of corporate registries has significantly simplified incorporation and post-incorporation for - malities. Most corporate filings can now be complet - ed online, and electronic signatures are now widely accepted for corporate documentation. In the area of corporate governance, recent years have seen increased transparency requirements, particular - ly through the implementation of beneficial ownership disclosure rules. The Loi PACTE has also encouraged companies to consider broader stakeholder interests by allowing them to define a corporate purpose ( raison d ’ être ). In parallel, French corporate law continues to evolve through legislative reforms and case law devel - opments affecting shareholders’ agreements, drag- along and tag-along mechanisms, and joint venture governance arrangements. Overall, France offers a modern and flexible legal framework for the establishment, structuring and operation of businesses, while benefiting from the legal certainty afforded by a mature and well-devel - oped judicial system. Foreign Direct Investment (FDI) Screening France maintains one of the most robust foreign investment control regimes among OECD countries, covering strategic sectors including defence, energy,
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