FRANCE Law and Practice Contributed by: Sophie Vermeille, Vermeille & Co
Other Emerging Targets Beyond ESG, recent activism has increasingly tar- geted public offers, particularly where the fairness of the price offered to minority shareholders is at stake (eg, Neoen, Esso, Vivendi). In this area, activism is not sector-specific but is linked to situations where con- trol or transaction structures raise issues of minority protection. Overall, while ESG activism (especially environmental) has been the defining feature of the past few years, the most consistent underlying trend continues to be the concentration of activism on large-cap compa- nies, both for liquidity reasons and for their higher public profile. 11.5 Most Active Shareholder Groups In the French market, activism has historically been led by a relatively narrow set of actors, but the land- scape is gradually diversifying. Hedge Funds Hedge funds, particularly foreign ones, have often been the most visible activists. However, they tra- ditionally face greater difficulties in being heard in France, where market participants and courts may be less receptive to their campaigns. This is less of an obstacle with the AMF, which plays a central role in reviewing public offers. The AMF has increasingly shown that it is open to considering the positions put forward by activist funds, even foreign ones. French Institutional Investors Domestic institutional investors have historically been less vocal than their Anglo-American counterparts, often due to cultural factors and long-standing ties with issuers. This trend is now beginning to shift, particularly under the influence of ESG-driven cam- paigns, where French asset managers have found both legitimacy and regulatory encouragement to take more active positions. Retail Investor Associations Associations representing individual shareholders play a particularly important role in distressed situ- ations, where the company’s financial position has deteriorated dramatically without clear explanations. In such cases, retail investors may represent a sig-
actions, liability claims or requests for expert inves- tigations, these tools are unevenly enforced and less frequently used in practice. Typical Agendas The agendas pursued by activists generally fall into three categories: • corporate governance improvements (board com- position, executive accountability); • transaction-related fairness (challenging the terms of public offers or mergers); and • value realisation (pressuring for disposals, strategic reviews or return of capital). In practice, therefore, shareholder activism in France remains more regulatory-driven than litigation-driven, with the AMF increasingly seen as the key arena for protecting minority shareholders’ interests. 11.4 Recent Trends In recent years, shareholder activism in France has shown several identifiable patterns. Sectoral Focus – ESG-Driven Activism A significant number of campaigns have been linked to ESG concerns, particularly environmental issues. The energy sector has been the most impacted, with activists targeting climate-related strategies, share- holder disclosure and transition plans. This trend was supported by the legislative and regulatory environ- ment, which facilitated the filing of climate-related res- olutions. However, there has been a visible slowdown in 2025, reflecting both a maturing of the debate and For reasons of liquidity and visibility, activist investors generally focus on large-cap companies. These issu- ers offer greater scope for attracting market attention, building meaningful positions and exerting influence, whether through shareholder resolutions or public campaigns. Mid-cap activism does occur but tends to be less visible and less impactful, given the structural limitations of the French market. a certain pushback from issuers. Market Capitalisation of Targets
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