France is strengthening its oversight of non-European investment in strategically important companies, lowering the threshold at which foreign share purchases require government approval.
Issued on: 03/08/2026 - RFI
France's Prime Minister Sebastien Lecornu leaves after the weekly cabinet meeting at the Elysee Palace in Paris on 22 July 2026. AFP - DIMITAR DILKOFF
Prime Minister Sébastien Lecornu issued a decree on Sunday extending France’s investment-screening system to acquisitions of 10 percent or more of a listed French company operating in a sensitive sector – regardless of whether its shares are traded in France or abroad.
The government said the measure was intended to prevent opportunistic investors from acquiring influential stakes in French businesses and technologies considered vital to national security.
Under the previous rules, transactions were generally subject to screening when a non-European investor acquired 25 percent of the voting rights in a French company.
A lower 10 percent threshold already applied to certain French companies listed on regulated markets. The decree broadens that protection to French businesses listed outside the European Union, closing a potential gap in the existing system.
The government said the change was needed “to guard against opportunistic, non-European equity acquisitions in French companies listed outside the EU that could pose threats to national security”.
Strategic industries
France has gradually expanded its foreign-investment controls over the past decade, amid concern that critical businesses could be taken over or weakened by investors whose interests do not align with those of the French state.
The screening system allows the economy ministry to examine transactions involving activities that could affect public order, public security or national defence.
The sectors covered include defence, cybersecurity, artificial intelligence, semiconductors, quantum technology, robotics, space operations and goods with both civilian and military applications.
Controls also extend to essential 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 brought within the system as France seeks to protect industries considered important to its future economic and technological independence.
The decree comes amid heightened geopolitical tensions and a broader European shift towards treating investment, supply chains and advanced technologies as matters of sovereignty rather than purely commercial concerns.
France has previously approved sensitive foreign acquisitions only after securing commitments on employment, production, research or the continued operation of strategic facilities.
The sale of a controlling stake in Sanofi’s consumer health business Opella – which makes the widely used painkiller Doliprane – to a US investment fund in 2024 prompted a fierce debate over foreign ownership and industrial sovereignty.
The deal was ultimately approved after the government obtained guarantees on jobs, production and the continued manufacture of key medicines in France.
Attracting investment
The government is nevertheless seeking to avoid unnecessary delays for companies that need to raise money on international markets.
Under the new rules, the finance ministry must decide within 10 days of receiving an application whether the proposed transaction requires a more detailed examination.
The accelerated assessment is intended to give companies and investors greater certainty while preserving the state’s ability to investigate deals that could raise national-security concerns.
The measure highlights the balancing act facing the government – protecting sensitive businesses while continuing to attract the foreign capital needed to support investment, innovation and employment.
France remained Europe’s leading destination for foreign investment projects in 2024, according to consultancy EY, although the number of projects fell by 14 percent to 1,025. The number of jobs associated with those investments declined by 27 percent to around 29,000.
The new rules are due to enter into force later in August.
(with newswires)
Prime Minister Sébastien Lecornu issued a decree on Sunday extending France’s investment-screening system to acquisitions of 10 percent or more of a listed French company operating in a sensitive sector – regardless of whether its shares are traded in France or abroad.
The government said the measure was intended to prevent opportunistic investors from acquiring influential stakes in French businesses and technologies considered vital to national security.
Under the previous rules, transactions were generally subject to screening when a non-European investor acquired 25 percent of the voting rights in a French company.
A lower 10 percent threshold already applied to certain French companies listed on regulated markets. The decree broadens that protection to French businesses listed outside the European Union, closing a potential gap in the existing system.
The government said the change was needed “to guard against opportunistic, non-European equity acquisitions in French companies listed outside the EU that could pose threats to national security”.
Strategic industries
France has gradually expanded its foreign-investment controls over the past decade, amid concern that critical businesses could be taken over or weakened by investors whose interests do not align with those of the French state.
The screening system allows the economy ministry to examine transactions involving activities that could affect public order, public security or national defence.
The sectors covered include defence, cybersecurity, artificial intelligence, semiconductors, quantum technology, robotics, space operations and goods with both civilian and military applications.
Controls also extend to essential 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 brought within the system as France seeks to protect industries considered important to its future economic and technological independence.
The decree comes amid heightened geopolitical tensions and a broader European shift towards treating investment, supply chains and advanced technologies as matters of sovereignty rather than purely commercial concerns.
France has previously approved sensitive foreign acquisitions only after securing commitments on employment, production, research or the continued operation of strategic facilities.
The sale of a controlling stake in Sanofi’s consumer health business Opella – which makes the widely used painkiller Doliprane – to a US investment fund in 2024 prompted a fierce debate over foreign ownership and industrial sovereignty.
The deal was ultimately approved after the government obtained guarantees on jobs, production and the continued manufacture of key medicines in France.
Attracting investment
The government is nevertheless seeking to avoid unnecessary delays for companies that need to raise money on international markets.
Under the new rules, the finance ministry must decide within 10 days of receiving an application whether the proposed transaction requires a more detailed examination.
The accelerated assessment is intended to give companies and investors greater certainty while preserving the state’s ability to investigate deals that could raise national-security concerns.
The measure highlights the balancing act facing the government – protecting sensitive businesses while continuing to attract the foreign capital needed to support investment, innovation and employment.
France remained Europe’s leading destination for foreign investment projects in 2024, according to consultancy EY, although the number of projects fell by 14 percent to 1,025. The number of jobs associated with those investments declined by 27 percent to around 29,000.
The new rules are due to enter into force later in August.
(with newswires)
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