On July 30, the French Treasury published its 2025 annual report (hypertext link to annual report : cdd21b0a-fab8-4537-bf81-cf47aabfe1e7) concerning the control of foreign investment in France.
A “foreign investment” is defined in article R.151-2 as the acquisition of control of an entity incorporated under French law, the acquisition of all or part of a branch of activity of an entity incorporated under French law, the crossing of the 25% threshold for ownership of the voting rights of an entity incorporated under French law, or the crossing of the 10% threshold for ownership of the voting rights of a company incorporated under French law whose shares are admitted to trading on a regulated market. Depending on the nature of the transaction, this definition may be influenced by the nationality (EU/non-EU) of the purchaser.
Article L151-3 of the French Monetary and Financial Code (Code monétaire et financier) reiterates the obligation to obtain prior authorization for foreign investments in any activity in France that falls within one of the areas concerning the protection of public order or the interests of national defense, themselves defined by successive decrees incorporated into article R151 of the Monetary and Financial Code.
These activities are linked to strategic sectors such as national defense, critical technologies and energy.
In 2024, the number of files submitted to foreign investment control increased (392 in 2024, 204 in 2019, 105 in 2014). 54% of these files were authorized, half of them with additional conditions attached. The majority of foreign investors in 2024 will not be European.
To understand the impact of the PACTE law on foreign investment in France see the article by Patricia Emeriau and Bruno Thomas: “The strengthening of control over foreign investment in France by the Pacte law | Option finance “