French Companies Target US Market with Cross-Border Deals

18 Sep, 2024

French Companies Target US Market with Cross-Border Deals

Political uncertainty in France is driving a surge in outbound mergers and acquisitions (M&A) to the US, according to the inaugural edition of France Deals Pulse. This trend reflects a strategic pivot by French companies seeking to expand their global footprint amid a sluggish domestic market and political instability.

After reaching a record low of EUR 3.4 billion across 60 deals in 2022, French outbound M&A to the US more than quadrupled in 2023, reaching EUR 12.3 billion across 58 deals. The trend continues to be strong in 2024, with a dynamic pipeline of potential deals, according to Mergermarket data.

Large French companies, particularly those listed and less dependent on the domestic market, are leading this drive. Aerospace giant Safran, for example, recently announced plans to acquire US-based Component Repair Technology. Other major players like LVMH, Total, and Saint-Gobain also dominate French M&A activity outside France.

Smaller French firms, such as office supplies specialist Elis, are also making headlines with their own US acquisition efforts. Despite initial market resistance, these deals could pave the way for other mid-cap companies to pursue similar strategies.

The attractiveness of the US market is bolstered by its pro-business environment and clearer market definitions compared to the fragmented European landscape. Regulatory pressure in the US is less intense, making it a more appealing destination for French firms looking to grow internationally.

With France’s political landscape uncertain and economic growth projections modest, the drive toward cross-border M&A is likely to continue, offering French companies new opportunities for expansion and market leadership.