France tightens oversight of foreign investment to protect national security

By Dominique Patton

PARIS, Aug 2 (Reuters) - French Prime Minister Sebastien Lecornu issued a decree on Sunday to strengthen oversight of non-European investment in French companies to protect national security.

• An acquisition of 10% or more of the shares of a publicly traded French company operating in a sensitive sector by a non-European investor will now require government authorisation, the decree said, regardless of whether the company is listed in France or abroad

• Screening previously applied when 25% of voting rights in a French company changed hands

• The threshold is being lowered "to guard against opportunistic, non-European equity acquisitions in French companies listed outside the EU that could pose threats to national security", the decree said

• The move occurs amid significant geopolitical tensions, the decree added, and would ensure protection of companies and technologies critical to French security

• To avoid hindering companies' ability to raise capital on markets, the finance ministry will be required to issue a decision within 10 days of an application on whether a transaction requires an in-depth review

• The new rules enter into force later this month

(Reporting by Dominique Patton; Editing by Paul Simao)