Investments: France toughens controls on investors from non-EU countries

Paris. France is tightening controls on investments from non-EU countries. Prime Minister Sébastien Lecornu issued a decree on Sunday, citing the protection of national security. According to the decree, the acquisition of 10 percent or more of the shares in a listed French company from a sensitive sector by a non-European investor will require government approval in the future.

This applies regardless of whether the company is listed in France or abroad, it was stated in the decree. Previously, state scrutiny only applied if 25 percent of voting rights changed hands. The new rule is set to come into effect this month.

The threshold is being lowered to protect against opportunistic takeovers by non-European investors in French companies listed outside the EU, which could pose a threat to national security, it was stated in the decree. The move is being made against the backdrop of significant geopolitical tensions and is intended to protect companies and technologies that are crucial to the country's security.

In order not to hinder companies' capital raising in the markets, the Ministry of Finance will in the future have to decide within ten days of an application being submitted whether a transaction will be subject to an in-depth review.