FRANCE Law and Practice Contributed by: Karl Hepp de Sevelinges, Nicolas Martin, Cyril Deniaud and Benjamin Cohu, Jeantet
Impact of the EU Foreign Subsidies Regulation (FSR)
Media saw an 884% increase in deal volume. Pharmaceutical and biotech remained active with strategic acquisitions, including AstraZen - eca’s nearly EUR1 billion purchase of Amolyt Pharma and Sanofi’s partial divestiture of its subsidiary Opella. In contrast, healthcare M&A declined by 43%, reflecting regulatory uncertainty and cost pres - sures. These trends illustrate a dual dynamic: strong investment in innovation-driven sectors along - side caution in more traditional industries. 2. Overview of Regulatory Field 2.1 Acquiring a Company In France, share sales remain the most common method for acquiring a company in private M&A transactions due to their simplicity and limited operational disruption. Asset sales are less fre - quent, typically used in smaller transactions, given their higher tax burden and more complex implementation. 2.2 Primary Regulators In France, M&A activity is overseen by several key regulatory authorities, depending on the nature of the transaction. • Autorité des marchés financiers (AMF) – regu - lates public M&A transactions involving listed companies. It ensures market transparency, protects investors, and supervises takeover bids, disclosures and squeeze-out proce - dures. • Autorité de la concurrence (French Com - petition Authority – FCA) – regulates M&A transactions (exceeding certain thresholds)
Since its entry into force in mid-2023, the FSR has introduced new filing requirements and potential remedies for large transactions involv -
ing non-EU financial support. Distressed M&A Activities
The French M&A market has been marked by major distressed M&A activities such as the fol - lowing. Orpea’s recapitalisation The takeover of the troubled French nursing home group Orpea by Caisse des Dépôts et Consignations highlights the active role of public institutions in stabilising strategically important but financially weakened companies. Casino’s restructuring The acquisition of control of French retail group Casino by a consortium led by Daniel Kretin - sky exemplifies the growing trend of distressed acquisitions in response to financial pressures and sectoral consolidation. These trends reflect a complex and evolving M&A landscape in France, where economic caution, regulatory tightening and strategic rea - lignments are shaping deal activity and market dynamics. 1.3 Key Industries In 2024, M&A activity in France was notably driven by sectors such as tech and AI, media, pharmaceuticals and financial services. The tech sector, especially artificial intelligence, led the way with high-profile deals like Mistral AI’s EUR600 million fundraising, reflecting strong investor enthusiasm for innovative, high-growth companies.
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