Clifford Chance
Reinforcement of the French foreign investment control: Back to protectionism?
21 May 2014
In the wake of high-profile acquisition projects announced in the French telecom, energy and transportation sectors, a controversial new Decree relating to foreign investments in France has just been released on May 15, 2014.
Decree n°2014-479 of 14 May 2014 reinforces the control of the French Minister of Economy over so-called "sensitive foreign investments" in France. In particular, it extends the material scope of its control to six new strategic sectors, i.e., energy, water, transport, electronic communications and health and infrastructures of vital importance. The Minister of Economy's powers are also slightly extended.
Given the impact of this procedure on their transactions, foreign investors need to anticipate this regulatory constraint at an early stage of the process and be prepared to address it.
