French equities could benefit from uptick

French equities could benefit from a continued up-tick in M&A activity, according to a study by Baird Group.

French equities could benefit from uptick


Baird Group's study indicates there is an upward trend in deals involving French companies.

The firm anticipates continued targeting of French companies in cross-border transactions as they further embrace globalisation and foreign investment.

There have been a number of high profile deals targeting French companies this year already.

Baird estimates that of the $450bn worth of M&A deals taken place globally so far in 2014, which is the highest half year value since before the global economic crisis began. France -domestic, inbound and outbound M&A- accounted for a quarter of all activity globally.

Notable transactions include the acquisition of Invensys by Schneider Electric, a $44 billion merger between Lafarge and Holcim and a deal between Laboratoires Prodene Klint and  GOJO Industries.

According to Baird, France is proving itself an ‘attractive inbound M&A alternative’ to Germany. The United States is the most common buyer of French companies, accounting for  27% of inbound deals.



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