France Expands Foreign Investment Screening Scope
A new decree extends France's foreign investment screening to acquisitions by non-EU investors of a 10% stake in French companies listed on certain foreign regulated markets.
France has broadened the scope of its foreign investment screening regime, a critical diligence item for cross-border transactions involving French targets. Under a new decree (No. 2026-718) that took effect August 17, 2026, the government's prior-approval requirement now applies more broadly to acquisitions by non-European investors. Previously, the threshold requiring review for an acquisition of 10% or more of the voting rights in a publicly traded company was limited to French companies listed on a regulated market in France. The decree expands this oversight to target companies listed on certain specified foreign regulated markets as well. The list of covered foreign markets was established by a separate ministerial order. This change significantly increases the number of potential transactions subject to review by the French Minister of the Economy, empowering the government to block or impose conditions on deals it deems a threat to national interests. Counsel for non-EU investors must now expand their FDI diligence to verify the listing location of any French target company to ensure compliance.