France FDI control
France FDI control

The following Competition practice note provides comprehensive and up to date legal information covering:

  • France FDI control
  • 1. What is the applicable legislation?
  • 2. Which government or other body (or bodies) reviews foreign investments?
  • 3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprises)?
  • 4. What are the triggers or thresholds for the regime to apply? What types of transactions are caught? Is there a minimum level of shareholding or a control test that applies?  Are there any other thresholds that need to be met (e.g. based on turnover or market shares)?
  • 5. Are there any exceptions that may apply?
  • 6. Is there any discretion to review transactions that do not meet any thresholds for review?
  • 7. What are the grounds for review, eg public or national security or other grounds?
  • 8. What level of discretion do the relevant authorities have to approve or reject transactions? Is there scope for any other body to intervene?
  • 9. Where a transaction is caught by the regime, is notification mandatory and must closing be suspended pending clearance?
  • More...

A conversation with Alexandra Rohmert, partner, and Louis-Nicolas Ricard, professional support lawyer in the Paris office of international law firm CMS on key issues on foreign direct investment (FDI) control in France.

1. What is the applicable legislation?

French laws and regulations applicable to investments requiring prior approval have recently been amended in several respects in order to increase the scope and means of control over foreign investments.

The principal French foreign investment control rules are set out at Articles L. 151-1 et seq. (as last amended on 22 July 2020) and R. 151-1 et seq. of the French Monetary and Financial Code (Code monétaire et financier).

An order dated 31 December 2019 (‘arrêté relatif aux investissements étrangers’), which entered into force on 1 April 2020, amended the decree of 7 March 2003, notably by supplementing the information requested, whether for the prior authorisation request or as regards the notice to be sent, once the transaction is completed.

2. Which government or other body (or bodies) reviews foreign investments?

Foreign investment clearance requests are addressed to the attention of the Minister of Economy. Within the Ministry of Economy, the body competent is the Treasury Department (Direction Générale du Trésor) through the Foreign Investment Office (Bureau des investissements étrangers), which then transfers and liaises with all other Ministries that may be concerned by the investment.

3. What is the scope of

Related documents:

Popular documents