FRANCE: Government to Increase Strategic Sectors subject to Foreign Takeover Veto

Monday February 19 2018

It has been reported that France is considering extending the sectors subject to veto powers during a foreign takeover. In 2014, the French government adopted a decree which provided that foreign takeovers of French companies which fell within certain sectors could be blocked. These included energy, water, transport, telecoms and health.

The proposals intend to extend these sectors to also include artificial intelligence, microchips, space and data storage. These new measures will be added to draft legislation to be presented on 18^th April the prime minister said.

Additionally, the government also plans to create a legal framework to pave the way for a so-called “golden share” rule that would preserve state control over companies in which it has a minority stake.