French government voices concern over private equity regulations

The French finance minister François Mer has called for regulators to examine the private equity industry more closely based on fears that ownership of companies by financial investors could be threatening jobs. Mer raised the subject at the launch of the Autorité des Marchés Financiers (AMF), the new financial regulatory body following the merger of the Commission des Operations de Bourse (COB) and the Conseil des Marchés Financiers (CMF). Mer stated that he sees closed scrutiny of private equity investments as the best way to safeguard the future development of the industry. With rising unemployment high on the government’s pre-election agenda, there are growing concerns about the role played by financial investors, who are often perceived to make harsher job cuts than trade buyers in order to meet profit targets. Secondary buyouts are currently increasing in popularity as an exit method in France, and many industrial buyers are worried that they are often unable to match bids made by private equity investors. According to figures compiled by AFIC and Ernst & Young, one in five acquisitions of unquoted French companies made since 1999 was a deal between two financial buyers.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• France
• Industrials