[ad_1]
On December 28, 2023, the Cabinet Order and Ministerial Order were issued.1 Issued to increase French foreign direct investment (‘FDI”) government again2 In many ways.
As expected, the threshold for voting rights acquired by non-EU/EEA investors in public companies, which was lowered to 10% (from 25%) after the pandemic, remains at 10%. If this situation exceeds 10% of the voting rights, the Ministry of Finance must be notified in advance. The investment can proceed without prior permission, but must be completed promptly, unless the Minister objects within 10 working days of the notification (in the temporary regime he has a six-month period). ).
France’s FDI review, which previously applied to companies registered in France, has now been extended to the acquisition of management rights in branches of foreign companies registered in France.
Last but not least, the list of strategic sectors has been expanded to include technologies involved in prison security, the extraction, processing, and recycling of critical raw materials, photonics research and development, and low-carbon energy production.
These changes, which come into effect from January 1, 2024, further tighten controls that have been in place over the past few months, resulting in an increase in the number of businesses being asked by investors to clear trades.
One question remains. How far will FDI regulations go, and how will the French government ensure the right balance between protecting strategic assets and not preventing foreign investors from supporting the French economy?
[ad_2]
Source link
