In key sectors such as defense, transport, cybersecurity, space, and health, certain French companies are deemed strategic by the State. As per a recent report on foreign investment control obtained by Les Échos, Paris has authorized the takeover of 135 so-called “sensitive” companies compared to 131 the previous year. The challenge for Bercy is to strike a balance between attracting foreign investments to France and safeguarding its interests.
As the Minister of the Economy, Bruno Le Maire has emphasized the importance of long-term monitoring for conditions imposed on foreign investors in sensitive activities. He declared that France remains fully committed to protecting businesses essential to its national life while maintaining an openness to foreign investments. However, he also recognizes that there must be more transparency and oversight in these controls.
Last year, approximately 309 investment files were submitted with requests from various countries such as the United States, United Kingdom, and Canada. Bercy can impose provisions on investors to maintain their head offices in France and safeguard jobs. Despite this, nearly 120 applications were refused by the government due to concerns about protecting strategic assets. Recent decisions include vetoing purchases of French strategic assets by foreign companies.
The government closely monitors investment activities in sensitive sectors such as healthcare to ensure national sovereignty and security. For example, with Biogaran’s potential sale to a foreign company looming large, France is prepared to activate foreign investment control procedures to protect vital national interests. Promoting European sovereignty and maintaining control over strategic assets in critical sectors like health remain top priorities for the French government.
In summary, France is committed to protecting critical industries while maintaining an openness to foreign investments through careful monitoring and regulation of investment activities in sensitive sectors such as defense and healthcare.
