Foreign Direct Investment Review Regimes in Europe

France – A constantly broadening scope

1966
First Regulation of foreign investments
(outside WW1 and 2)
2005
+ Gambling,
private security, biological threats, interception of communications, information systems, dual use items, cryptology, holders of defence secrets
2014
“Alstom Decree”
+ Energy, water, transport, electronic communications, public health, crucial infrastructures
2019
+ Aerospace, data storage, R&D in some new technologies and dual-use items
+ new powers (orders, injunctions, increased penalties and powers in case of breach)
2020
+ Lower thresholds (25% instead of 33,3%)
+ Information press, agricultural products, quantum technologies, energy storage
April 2014
GE/Alstom becomes public
2019
EU FDI Regulation
2020
COVID-19 outbreak
3 Major scope extensions over the past few years
1996
Threats to public order, health or security
+ Suppliers of weapons, ammo, explosive or defence equipment
184 transactions screened in 2018
(50% EU/50% non-EU)
+Biotechnologies
+ Specific temporary (?) procedure for listed companies (10% stake)

France – Procedure

Application
Initial review (Phase 1)
30 business days
In-depth review
(Phase 2)
45 business days
Clearance under conditions
Unconditional clearance/ Inapplicability
Clearance not granted
(tacit refusal)
Unconditional clearance
Clearance not granted

New COVID-19 specific procedure aiming to prevent foreign takeovers of French strategic businesses weakened by the COVID-19 crisis (digital tech, cars, airlines, etc.)

To apply for the second half of 2020 Only applies to non-EU/EEA investors Lower threshold (10% stake), but only in listed companies active in screened sectors Specific procedure: 10 days to determine whether further review is necessary Possibility to limit the investment to 10% of the voting rights