France has reduced the ownership threshold that triggers government screening of non-European investors in strategically important listed companies to 10%.
Prime Minister Sébastien Lecornu signed a decree on Sunday (2 August) that expands the country’s investment-screening regime.
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Under the new rules, acquisitions of 10% or more in a listed French company operating in a sensitive sector will fall within the regime, regardless of where the company’s shares are traded, reported Radio France Internationale.
Previously, transactions involving non-European investors were generally reviewed only after they exceeded the 25% threshold of voting rights in a French company.
A 10% threshold had already applied to certain French companies listed on regulated markets.
The new decree extends that standard to French companies listed outside the European Union (EU), which officials said addresses a gap in the existing rules.
The screening system enables the economy ministry to review transactions in areas that could affect public order, public security or national defence.
Sectors covered include defence, cybersecurity, artificial intelligence, semiconductors, quantum technology, robotics, space activities, and dual-use goods with both civilian and military uses.
The regime also applies to critical infrastructure and services in energy, water, transport, telecommunications and healthcare, as well as food security, political and general-interest news media, and critical raw materials.
Low-carbon technologies, energy storage and biotechnology have also been added to the scope of the regime.
Over the past decade, France has progressively expanded its foreign investment controls amid concerns that important domestic companies could be acquired or weakened by investors whose objectives differ from those of the French state.
Under the revised rules, the finance ministry must decide within ten days of receiving an application whether a proposed transaction requires further review.
The new timetable is intended to provide companies and investors with greater predictability while preserving the state’s ability to examine deals that raise national-security concerns.
The regulations are due to come into force later this month.
