The French government has moved to strengthen its control over foreign investment in sectors deemed critical to national security. Prime Minister Sébastien Lecornu issued a new decree on Sunday that lowers the threshold for government authorization of non-European investments in French companies. Under the updated rules, any non-European investor seeking to acquire 10% or more of the shares in a publicly traded French company operating in a sensitive sector must now obtain prior approval from the Ministry of the Economy. This represents a significant reduction from the previous 25% threshold for voting rights.
The policy change is designed to protect essential technologies and industrial capabilities from what the government describes as opportunistic acquisitions. Officials at Matignon noted that the move is a direct response to the current climate of heightened geopolitical tension. By capturing smaller stakes, the government aims to prevent foreign entities from gaining influence over strategic assets, regardless of whether the target company is listed on a French exchange or an international one.
To balance these security concerns with the need for market liquidity, the government has introduced an expedited review process. The Ministry of the Economy is now required to issue a decision within 10 days regarding whether a transaction necessitates an in-depth investigation. This measure is intended to ensure that companies can continue to raise capital on international markets without facing excessive administrative delays. The new regulations are set to take effect later this month, marking a further evolution in France’s long-standing framework for monitoring foreign direct investment.