Global M&A Market Surges, But France Lags Behind – While the global mergers and acquisitions (M&A) market has rebounded impressively in 2024, with a 14% increase and total transactions reaching approximately $3.4 trillion, france’s M&A landscape remains stagnant. Political instability has hindered growth, leaving the number of business transfers and mergers largely unchanged from the previous year. Augustin d’Angerville, head of JPMorgan’s M&A in France, emphasizes that trust is crucial for driving these transactions. In stark contrast,the number of large deals exceeding $10 billion has risen by 17% globally,highlighting a significant disparity in market performance between France and the rest of the world.
Interview: The Diverging Paths of Global M&A Markets and France’s Stagnation
editor (Time.news): Welcome, Augustin d’Angerville, head of JPMorgan’s M&A in France. It’s great to have you here to discuss the current state of the global mergers and acquisitions market, especially the stark contrast between global activity and France’s situation.
Augustin d’Angerville: Thank you for having me. It’s an crucial time to discuss these developments, as the M&A landscape is shifting rapidly, but not uniformly across all markets.
Editor: Absolutely. Global M&A transactions have surged by 14% this year, totaling around $3.4 trillion. What factors do you think are driving this growth worldwide?
Augustin: The rebound can be attributed to several factors, including pent-up demand from previous years, excess capital in the markets, and a general eagerness among companies to pursue growth strategies through acquisitions. Additionally, we are seeing more confidence in economic recovery post-pandemic. Large deals, particularly those exceeding $10 billion, have increased significantly by 17%, underscoring this trend.
Editor: That’s quite impressive. However, France’s M&A landscape seems to be stagnating amidst this global surge. What do you see as the main causes of this stagnation?
Augustin: The primary issue affecting France’s M&A activity is political instability, which has created an surroundings of uncertainty. Investors and companies need a degree of trust to engage in M&A transactions,and without that,they are less inclined to make deals or take risks. This lack of confidence has kept the number of transactions largely unchanged from last year.
Editor: Trust plays such a crucial role in market dynamics. Could you elaborate on how political factors specifically affect M&A activity in France?
Augustin: Certainly. Political stability is vital for providing a predictable buisness environment.In France, recent political turmoil has led to concerns about regulatory changes, economic policy shifts, and even potential changes in leadership. Such uncertainty can cause businesses to delay decisions on mergers or acquisitions as they wait to see how the landscape evolves.
Editor: Given the current situation, what advice would you give to stakeholders in france’s M&A market?
augustin: It’s essential for investors and companies operating in France to remain adaptable and informed. keeping abreast of political developments and understanding the regulatory landscape will be crucial. Moreover, fostering relationships and building trust within the industry can help stabilize deals when the opportunity arises.We should also encourage dialogues between regulators and business leaders to create more favorable conditions for M&As.
Editor: That’s insightful advice. Many of our readers might wonder how businesses can enhance their trust-building efforts in today’s climate.
Augustin: Open and transparent communication is key. Businesses should engage proactively wiht stakeholders, express their intentions clearly, and demonstrate their commitment to ethical practices. Moreover,forming strategic alliances can also enhance credibility and provide a safety net during uncertain times.
Editor: Thank you, Augustin. In light of the disparities between France and the global market, what do you think the future holds for M&A in France?
Augustin: The future will largely depend on the resolution of political uncertainties and the restoration of confidence among investors. If France can stabilize its political environment and create a more predictable setting for transactions, we could very well see a revival in M&A activity.until than, it may take time for the country to catch up with the global momentum.
Editor: It sounds like the road ahead is quite nuanced. Thank you for your insights today,Augustin. It’s clear that while the global M&A market is thriving, addressing local challenges will be essential for France to fully participate in this growth.
Augustin: Thank you for having me. I look forward to seeing how these dynamics evolve in 2024 and beyond.