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France intends to strengthen oversight of foreign investments to protect national security. Prime Minister Sébastien Lecornu has issued a decree requiring government approval when a non-European investor acquires 10% or more of shares in a listed French company operating in sensitive sectors. Previously, scrutiny was applied only when there was a change in ownership of 25% of voting rights. The new rules lower this threshold to better safeguard companies and biotechnology from acquisitions that pose a threat to national security, especially amid rising geopolitical tensions. These regulations are set to take effect later this month, with a 10-day review period by the Ministry of Finance to determine the need for a comprehensive assessment of the transactions.
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