Activity levels bounced back in France in 2021 after the initial impact of the pandemic and this recovery continued apace in 2022.
‘2022 was the best year,’ says Henri Savoie, who heads the public law and regulatory practice at Darrois Villey Maillot Brochier. ‘2023 will be more normal,’ he warns, pointing out that ‘companies will be active, but they will be cautious. It is a trend.’
Indeed, while partners report that some practices in France have yet to feel the full impact of the ripples of geopolitical and economic uncertainty globally in the wake of Russia’s invasion of Ukraine, Brexit and the energy crisis, many are more concerned for the year ahead.
Gide managing partner Jean-François Levraud comments: ‘The economic situation is more difficult to face currently than a few years ago [but] across all departments, activity is high regardless of the economic situation, though the type of work in the practice area may change.’ He also notes that ‘the economic crisis requires reinvention and adapting to new ways of working’.
‘The economic crisis requires reinvention and adapting to new ways of working.’ Jean-François Levraud, Gide
Gide, like fellow leading French independent Bredin Prat, continued to represent notable clients on some of the country’s most significant acquisitions of 2022 both domestically and overseas. An example of this was Gide’s cross-jurisdictional work advising MSC Group on the acquisition of Bolloré Africa Logistics, which valued the transport company at €5.7bn.
At a domestic level, Bredin Prat notably advised Covéa, a leading French mutual insurer, on its €7.7bn acquisition of PartnerRe, the global reinsurer wholly owned by Exor, which completed in 2022. The firm also continues to advise GE in connection with the sale to EDF of its Nuclear Steam Power activity, a strategic transaction resulting from the new French energy plan announced by President Macron in February 2022.
Financial regulatory work also increased in the country last year, with a surge in work relating to crypto finance, following the European Council’s introduction of a regulatory framework in the form of the Markets in Crypto-Assets (MiCA) Regulation. But while some practices have – to date – held up relatively well, others saw a dip in activity levels last year, including bankruptcy and insolvency work. Other practices that struggled include debt capital markets. For example, while equity capital markets saw a rise in activity following the opening up of a blocked IPO pipeline, the debt capital markets saw a significant decline in both the number of issues and the value of debt raised, with high yield in particular falling starkly across Europe.
Covid has also affected the real estate market in France, with partners reporting a decrease in hotel and office-related activity during the pandemic. Meanwhile, the lingering impact of the pandemic and the ongoing effect of the war in Ukraine is continuing to have an impact on sectors such as construction. Outside Paris, rising prices have led construction firms to advise more owners of public projects and intercede in contract negotiations between clients and contractors.
Additionally, delays in sourcing and transporting materials have impacted the speed of development and construction projects across a host of sectors, including energy. This is just one of a number of problems hitting the energy sector, although wind energy work has increased in France as a result for President Macron’s push for cleaner air and his implementation of various renewable initiatives. The nuclear market has also remained strong, while aviation lawyers report a shift towards less-traditional matters involving climate change concerns, with a rising interest in pollution cases.
One shift in the way firms in France have been working is through better use of technology, with increased digitisation making international collaboration for French boutiques more accessible than ever, making it easier for boutiques to work together and better compete with larger, international players. Anglo-Saxon firms continue to make up a vast majority of the legal market in Paris, although Davis Polk made the decision to close its Paris office in December 2022, with some suggesting other US firms may also be less keen to invest. Savoie comments: ‘US law firms may not have as big an interest. Davis Polk made the decision last year to close.’
‘Continued organic growth is foreseen because of the nature of our practice and the expanding market we are in.’ Didier Martin, Bredin Prat
With regards to individual talent in France, junior-level hiring remains a gradual process following career uncertainties caused by the pandemic, but partner retention and consistent partner recruitment has reportedly remained steady across the board. Didier Martin of Bredin Prat notes that ‘continued organic growth is foreseen because of the nature of our practice… and the expanding market we are in’, while Levraud states that Gide strikes a ‘satisfactory balance between new hires and lateral promotions’.
Looking ahead to 2023, while some partners predict a slowdown in the first half of the year, many remain optimistic for the rest of 2023 and into next year. The arrival of the Olympics to Paris in 2024 is also expected to have a positive impact on the French economy, with opportunities in real estate, construction and employment arising as preparations kick off in earnest this year. LB
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| Rank (by Legal 500 ranking) | Firm name | Region | Total lawyers | Total partners | Promotions | Offices | Partner hires |
|---|---|---|---|---|---|---|---|
| 9 | Gide Loyrette Nouel | France | 517 | 121 | 9 | 11 | 2 |
| 20 | Bredin Prat | France | 200 | 50 | 1 | 2 | 2 |
| 38 | Darrois Villey Maillot Brochier | France | 84 | 27 | 1 | 1 | 1 |
| 49 | De Pardieu Brocas Maffei | France | 150 | 38 | 4 | 1 | 2 |
| 98 | Viguié Schmidt & Associés | France | 32 | 10 | 1 | 1 | 1 |