Very unusual! For the first time, the French government officially rejected the US takeover
According to the French “Echo” website reported on January 3, the French government officially rejected for the first time a company from the United States partner acquisition.
In mid-december last year, the french government set a precedent by refusing to buy france’s optoelectronics company, fltonis, a move largely aimed at chinese companies.
Between 2008 and 2020, U.S. companies invested 1 percent in France, according to the company $10.5 billion, far more than other countries (with Chinese companies investing $18 billion). Even in the Alstom acquisition, the tightly controlled move by then-Minister of Economy Arnold Monteburg failed to prevent GE from meddling in French energy.
The French government’s rejection of the Ftones deal marks a break with past practices. This is not only the first time that the government has officially rejected foreign acquisitions, but also, more importantly, involving an “ally” enterprise. Tredin, which has reached france extensively and employs more than 800 people, is a supplier recognized by the french defence ministry.
Moreover, as Tredin noted in its report to the Securities and Exchange Commission, this is one of the initiatives of the French Ministry of Finance to implement a new framework for controlling foreign investment. France is now seen to have changed course in protecting its strategic interests.
According to Pascal Dipera, an expert in the field of French strategy:
By rejecting a deal from an allied company in the case of the Fortunes acquisition, and at the time of the transfer of power in the United States, the French government showed that it could require its institutions to be flexible and ingenious in a fair and impartial manner.
The French government, which was involved in an analysis of buyers’ credibility about a year ago, now vetoed the takeover. Pascal Bina, a lawyer and partner at Sida, said:
Foreign buyers future, foreign buyers must consider the existence of some political risk, which in some cases may lead to the rejection of the acquisition, even in the final stage.