The French government has moved to strengthen its control over the acquisition of companies within sensitive sectors by foreign investors. Prime Minister Sébastien Lecornu announced the decision through a decree published on Sunday, August 2. Under the updated regulations, the threshold for state intervention has been significantly lowered: any stake of at least 10% acquired by a non-European investor in a French company listed on a regulated market outside the European Union now requires official state authorization. Previously, the Ministry of the Economy was only empowered to scrutinize acquisitions of 25% or more.
Explaining the rationale behind the policy shift, the prime minister’s office stated that the objective is to protect against opportunistic non-European shareholdings in French firms listed outside the EU, which could pose potential threats to national security. Prime Minister Lecornu emphasized the importance of the move on X, stating that protecting strategic companies is essential to safeguarding French sovereignty and balancing the need to support corporate development with the defense of national interests.
To mitigate concerns regarding the impact on capital raising, the government has committed to using a fast-track procedure for this enhanced oversight. Investors are required to notify the Treasury Directorate-General of their transactions, after which the economy minister will have a ten-day window to determine if an in-depth review is necessary.
This regulatory change follows recommendations from a parliamentary report aimed at achieving a radical shift in France's approach to economic security. The report was authored by MPs Christophe Plassard of Horizons, Jean-Louis Thiériot of the Republicans, and Charles Rodwell of Ensemble pour la République. These lawmakers argued that the geopolitical climate has made foreign investment screening increasingly significant. Jean-Louis Thiériot noted that while France already maintains one of Europe's most robust screening mechanisms, it must also focus on providing companies with the means to grow. Christophe Plassard further urged a move away from naivety, advocating for both defensive measures against threats to capital and an offensive strategy to retain French technical know-how.
This decree is in line with several recommendations set out in a parliamentary report calling for a "radical shift in posture" in order to strengthen the country's economic security. Drafted by Christophe Plassard (Horizons MP for Charente-Maritime), Jean-Louis Thiériot (Right-wing Republican MP for Seine-et-Marne) and Charles Rodwell (Ensemble pour la République MP for Yvelines), the report stressed that the French framework needed to be reinforced at a time when foreign investment "is taking on greater significance because of the geopolitical context".
