The French regulator is tightening its grip on foreign capital. While foreign investors account for 45% of merger and acquisition (M&A) transactions involving French targets, the government is stepping up its oversight. Could France’s economic competitiveness be at risk? Experts from AURIS Finance, a consulting firm specializing in M&A transactions, share their analysis.
In an op-ed published in the daily newspaper Les Échos, Nicolas de Witt, a lawyer at the Paris and New York bars, raises the alarm: the balance between French sovereignty and economic competitiveness is now under threat.
Strong Attractiveness of French Companies
In 2024, foreign investors accounted for approximately 45% of M&A transactions in France. In 2025, this trend appears to be continuing: despite a decline in the overall value of transactions, international players are increasingly active in the French market, both in terms of deal volume and value. Between January and September 2025, the number of 100% French transactions plummeted by 44%, reaching $15.3 billion, while foreign buyers increased their presence, with a 7% rise in the number of transactions totaling €28.9 billion.
Increase in the Number of Controls
International investors now face a growing number of regulatory reviews. Through the IEF (Foreign Investment in France) mechanism, the Ministry of the Economy has been deploying significant resources since 2023 to scrutinize sensitive transactions. In 2024, 392 cases were submitted to the Directorate General of the Treasury, compared to 309 the previous year—a 25% increase in just one year.
New Technologies Under Bercy’s Radar
This surge reflects Bercy’s evolving concerns. Initially, only sectors deemed strategic—those involving national sovereignty issues—were subject to oversight, specifically defense, security, infrastructure, and healthcare. Over time, the list of monitored sectors has expanded, and transactions involving new technologies are now under close scrutiny.
Conditional Approvals
Transfers involving companies specializing in artificial intelligence, robotics, cybersecurity, semiconductors, and biotechnology are increasingly subject to review. While most transactions requiring official approval are granted, 54% of authorizations come with conditions, such as maintaining production in France, retaining patents, or providing additional guarantees regarding governance or data protection.
Retail and Pharmaceutical Sectors
Recently, several transactions have drawn Bercy’s attention. In April 2025, Sanofi’s Doliprane brand came under American ownership after receiving approval from the Ministry of the Economy and Finance. Another ongoing case involves JD.com, the Chinese e-commerce giant, and its proposed acquisition of Ceconomy, a shareholder in FNAC Darty.
Our Experts by Your Side
In an uncertain macroeconomic environment, the control mechanism implemented by the French government could deter some foreign investors. However, it is important to note that the majority of transactions receive approval from the Ministry of the Economy. AURIS Finance’s experts specialize by sector and support you throughout your financing process, from identifying partners to finalizing the deal.
