The government is strengthening its protections for French companies considered sensitive. A decree published on Sunday, August 2nd, lowers the ownership threshold from 25% to 10% above which a foreign investment can be subject to scrutiny by the Ministry of the Economy. This measure applies to non-European investors wishing to acquire a stake in listed French companies.
The Prime Minister's office justifies this tightening of the stance by citing the increasing geopolitical tensions and the risk of opportunistic operations threatening national security. By intervening as soon as an investor considers acquiring 10% of the capital, the State intends to identify more quickly any acquisitions likely to affect French industrial, energy, or technological sovereignty.
Enhanced monitoring without blocking funding
To avoid unduly complicating companies' access to financial markets, the government is planning an expedited procedure. The investor in question will have to notify the Treasury Department of their project. Once the complete file is received, the Minister of the Economy will have ten days to decide whether the transaction requires further review.
This reform illustrates the return of the state to the protection of strategic assets, while foreign capital remains essential for financing many businesses. Maintaining this balance will nevertheless be delicate: overly lenient controls could expose certain sensitive sectors, while overly restrictive measures could discourage investors who are nonetheless vital to French economic development.
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