France Extends 10% FDI Screening to Foreign-Listed Companies
A new decree lowers the threshold for mandatory foreign direct investment screening to 10% for acquirers from outside the EU and EEA, now including stakes in French companies listed on foreign stock exchanges.
France has broadened the scope of its foreign direct investment (FDI) screening regime by extending a key rule to French companies listed on foreign stock exchanges. A governmental decree now applies the lowered 10% voting-rights acquisition threshold to trigger a mandatory FDI review for non-EU and non-EEA investments in these companies. This measure, initially introduced during the COVID-19 pandemic and repeatedly extended, was previously focused on companies listed within Europe.
This expansion is significant for international investors and corporate acquirers, as it subjects a wider range of transactions to the scrutiny of the French Treasury. It adds a critical layer of regulatory diligence for deals involving French targets, even if their shares trade primarily on markets like the NYSE, LSE, or Nasdaq. Counsel on cross-border M&A and investment matters must now confirm whether a potential stake purchase in any publicly traded French company meets this 10% trigger, potentially affecting deal certainty, timelines, and strategy. The immediate next step for advisors is to update their FDI screening checklists to reflect this expanded jurisdictional reach.