FRANCE: Publication of decree extending France foreign investment restrictions

Thursday May 15 2014

A decree extending government powers to block foreign takeovers has been published in the French Official Gazette.

The new decree, Decree 2014-479 “on foreign investments subject to prior authorisation”, amends certain provisions of the Monetary and Financial Code, most notably Article R. 153-2. The rules require foreign investment in “sensitive sectors” exceeding a certain size (in general, 1/3 of the capital or voting rights of a company) to receive prior approval from the Ministry of Economy, Finance and Employment prior to acquisition/implementation.

The decree extends the prior authorisation of foreign investments to activities which impact on materials, products or services, including those relating to security and efficient operation of facilities and equipment considered essential to guarantee the interests of the country in terms of public policy, public security public or national defence as below:

• Integrity, security and continuity of supply of electricity, gas, oil or other energy source;
• Integrity, security and continuity of water supply in accordance with the standards laid down in the interest of public health;
• Integrity, security and operational continuity of networks and services of transportation;
• Integrity, security and operational continuity of networks and services of electronic communications;
• Integrity, security and continuity of operations of an institution, facility or structure of vital importance within the meaning of Articles L. 1332-1 and L. 1332-2 of the Defence Code; and
• Protection of public health.

The decree is currently only available in French.

Click on the above link for the decree.