Government control for any participation, by a non-European investor, by 10% in a listed company is extended until the end of 2022.
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Officially, it is a question of “accompanying the recovery”, we are assured in Bercy. But while France plunges into the fifth wave of Covid-19 and that the new Omicron variant sows panic on the stock markets, the announcement takes a very political round. France has decided to extend one year the strengthening of foreign investment in listed companies, introduced during the pandemic to protect French florets weakened by the health crisis, announced the Minister of the Economy, Bruno the Mayor, Monday, November 29 on France 2.
The state control trigger threshold, the investments of foreign (non-European) in the capital of listed French companies had been lowered by 25% to 10% in the summer of 2020. This “had to End the end of December 31st. I extend an extra year, “the Mayor said in the broadcast” the four truths “. This control relates about fifteen strategic sectors, such as energy, defense, transportation or food. In April 2020, Bruno the mayor announced a strengthening of the foreign investment control system from the 2014 “Montebourg Decree”, and already expanded in 2018 as part of the PACTE law: the biotechnology sector (vaccines) had been added to those subject to authorization. In July 2020, the detention threshold of a French company from which a non-European investor shall file a prior request to Bercy, already lowered by 33% to 25% of the voting rights, had been further reduced, for companies listed at 10%.
“During the crisis we lowered this detention threshold at 10% saying” Let’s pay attention because the day after the crisis, there are companies that can be weakened and we risk losing a number of skills , of technologies, from know-how, “explained the tenant of Bercy, Monday morning. “The current health and economic context does not remember the risks on these listed French companies”, justified the Minister of the Economy and the Minister of Foreign Trade and Attractiveness, Franck Riester, in a statement common. The CAC 40 recorded on Friday its strongest drop since the first confinement in France (- 4.75%), following the appearance of the new variant in South Africa.
A measure “basically Policy “
less than five months of the presidential election, it is a question of avoiding a possible hostile raid on a tricolor flagship, like the redemption of the Alstom energy branch by the American General Electric, in 2014 When Emmanuel Macron was a minister of the economy, now considered a symbol of the failure of the country’s economic sovereignt strategy. Or, at the very least, to be able to make a force argument against the oppositions that will not fail to pin the executive on the subject.
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