The French government is preparing to tighten its oversight of foreign investment in companies deemed strategically important. According to BFM, the threshold for triggering a state review would be lowered from the current 25% ownership stake to just 10%.
The move is designed to reduce risks of foreign interference in key sectors, BFM reports. The change was announced by the Prime Minister's office, Matignon, which said the state would reinforce its control over acquisitions of sensitive businesses by overseas investors, as reported by franceinfo.
Under the current rules, a foreign investor could acquire up to a quarter of a strategic company before the government could step in and examine the transaction. The proposed change would allow authorities to intervene much earlier, once a 10% stake is reached. This gives the state a clearer view of creeping ownership and a stronger hand in protecting critical industries.
The decision has been covered by multiple French outlets, including Les Echos, which noted the stricter regime for foreign investments, and L'Usine Nouvelle, which highlighted the lower trigger point. Boursier.com also reported that Paris is tightening the rules for companies classified as strategic.
The new threshold would apply across sectors already considered sensitive, such as defense, energy, and technology. The government has not yet specified a timeline for when the new rules would take effect, according to the reports.
What to watch next: whether the lower threshold will be applied retroactively to existing stakes or only to new acquisitions, and how the business community responds to the tighter oversight.
