ANNOUNCEMENT 14 May 2014In May 2014, the government of France announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Legal text of the law:
On 14 May 2014, the French Minister of the Economy, Arnaud Montebourg, signed an extension to a law that allows blocking foreign investment in French firms. Already in 2005, France introduced the initial law to make sure that certain foreign takeovers are subject to state approval. In this initial law, such vetos were limited to firms in the area of defense and national security. The extension from 14 May 2014 increases the number of sectors by including: energy, water, transport, telecommunication and health.
The extension was annonced at a time when the French company Alstom fought a take over bid by the American company General Electronic. Alstom is active in the sector of transportation as well as energy and does therefore fall under the new regulation.