France has announced stricter controls on foreign investment in strategic industries, lowering the approval requirement for ownership from 25% to 10%, citing national security concerns.
On August 3, 2569, at 15.20:XNUMX a.m., Bloomberg News reported that The French government has announced stricter scrutiny of foreign investment in companies operating in strategic industries. Citing national security reasons, amidst increasingly tense geopolitical situations.
According to a statement from Prime Minister Sébastien Lecornau's office, investors from outside the European Union (EU) seeking to acquire a 10% or higher stake in a French company operating in a key sector, whether listed on the French or international stock exchange, must obtain approval from the French Ministry of Finance before proceeding with the investment.
This new measure lowers the requirement for approval from the previous 25% voting rights holder to just 10%, in order to prevent investment that might take advantage of key national companies and technologies amidst geopolitical tensions, although the government has not explicitly stated which countries are being referred to.
Furthermore, the government is preparing to expedite the review process, with the Ministry of Finance deciding within 10 days of receiving the request whether the transaction in question requires in-depth investigation.
France already had a system in place to monitor foreign investment, particularly when investors from outside the European Union hold stakes in companies in key industries. However, the new rules will expand this oversight to better protect the country's strategic technologies and businesses from security risks.
refer : www.bloomberg.com
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