FRANCE TRENDS AND DEVELOPMENTS Contributed by: Hugo Sanchez de la Espada, Véronique Millischer, Olivia Chriqui-Guiot, Robin Gaulier and Aurore Cormary, Baker McKenzie
Current M&A Activity in France: Overview and Outlook After showing resilience throughout 2024–25, the French M&A market (including private equity) has been affected by the current challenging national and international context but managed to further rebound and recover in the third quarter of 2025, with the total value of transactions amounting to EUR105 billion in the first nine months of the year (up 2% year-on-year). The French market remained dynamic, with a 2% increase in the number of deals recorded in the first three quarters of 2025. As a result, France remains the 13th most-targeted country for M&A globally and the fifth in Europe. Decrease in deal value The value of deals with any French involvement decreased during the first six months of 2025; this trend was especially visible in the first quarter whereby transaction value dropped by 24% compared to 2024. The French M&A market nevertheless experienced a rebound in the second and third quarters of 2025, allowing statistics for the first nine months of 2025 to surpass the figures for the same period of 2024. Over - all, during the first nine months of 2025, the French market was affected by economic, fiscal and politi - cal uncertainty but has managed to remain dynamic, show resilience, and recover − demonstrating 2% growth in both deal value and deal number. More specifically, during the first half of 2025, the French M&A market experienced an increase in deal number coupled with a decrease in deal value − con - firming the decrease in target pricing trend, which was already prevalent in 2024. This decrease in target pricing reflects the current state of the French M&A market, which experienced strong growth and peaked in 2021–22, with highly valued assets and significant acquisition premiums paid by investors. The market is now undergoing a shift, as evidenced by the avail - ability of many assets on the market that do not sell well (hence a fall in the volume of exits). This has led to a decline in valuations, reflecting a clear transition toward a buyer’s market. Despite the overall market shift, the first half of 2025 saw a stronger volume of large-cap transactions (above EUR1 billion) − involving premium targets −
compared to 2024. In a challenging economic and geopolitical environment, the popularity of large-cap deals reflects buyers’ appetite for mature, lower-risk targets with more stable growth profiles. The M&A market in France experienced a significant rebound in the third quarter of 2025. Deal values and deal number statistics overall surpassed those in 2024, demonstrating the continued attractiveness of In the first nine months of 2025, high technology was the leading segment in French M&A, representing 17% of all target activity and the highest number of deals. The financial sector is second, also accounting for 17% of all M&A activity and notably driven by large transactions, such as BPCE’s EUR6.4 billion acquisi - tion of Novo Banco. Healthcare continued to attract significant investment and was the third-most dynamic sector for French M&A in the first three quarters of 2025. The year saw landmark transactions, such as: the French M&A market. Sector-specific trends • Sanofi’s acquisition of the US-based Blueprint Medicines for EUR8.3 billion, strengthening its portfolio; and • the capital reorganisation of Ceva Santé Animale, valuing the company at over EUR9 billion and marking the arrival of Archimed alongside Téthys and the Mérieux family. The energy and power segment also remained highly active, supported by the geopolitical context and the need for ecological transition, with major deals such as Ardian’s EUR2.3 billion acquisition of Akuo Energy. The industrials, materials, and media and entertain - ment segments contributed to the French M&A market to a lesser extent, while the real estate and retail sec - tors remained subdued, with limited buyer interest. Private equity involvement Private equity activity in France during 2025 has been shaped by a buyer-driven market and persistent valu - ation decrease, with price levels reflecting a loss of roughly three years of EBITDA versus 2021 peaks. This backdrop – together with a sharp slowdown in
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