Key Considerations ^ On July 30, 2025, France published updated guidelines related to the FDI regime, an update to the 2022 edition, intended to capture the legislative and regulatory changes adopted since then and provide greater clarity on the FDI review process. The updated guidelines introduce important practical clarifications, notably: that a prior authorization to cross the 10% voting rights threshold does not automatically cover a subsequent crossing of the 25% threshold (for which a separate filing is required); the mechanics of indirect threshold crossings; and the conditions under which continuation fund transactions may qualify for the intragroup exemption. ^ France continues to impose mitigation measures and conditions, with more than half of the approved transactions subject to such commitments imposed to address concerns related to French national interests and where the target entity operates in sensitive activities. In 2024, the CIEF received a record 392 filings – a 27% increase from 309 filings in 2023 – reflecting a greater awareness of FDI constraints by stakeholders. The French Treasury’s annual report published in July 2025 disclosed for the first time that six investments were prohibited between 2022 and 2024, including the acquisition by U.S. group Flowserve of Velan and Segault, manufacturers of valves for French nuclear submarines and reactors. ^ A French parliamentary information report published in May 2025 proposed 22 recommendations to reform the French FDI regime, including the introduction of ex post intervention powers (modeled on the UK regime), an expanded list of covered sectors, and the introduction of filing fees. No legislative follow-up is anticipated in the near term, though these proposals may inform future adjustments in the context of implementing the new EU FDI Regulation that is expected to be adopted shortly by the EU Council.
FDI Regime Overview The French FDI regime requires foreign investors, both from within the European Union (with limited exceptions) and abroad, to obtain prior authorization from the Bureau du Contrôle des Investissements Étrangers en France (the CIEF) of the French Ministry of Economy and Finance (the Ministry) in order to take a significant share in a “strategic asset” in France. The list of strategic assets is set by decree and is updated periodically. The list, last updated in late December 2023, currently comprises 21 sectors that are deemed strategic for the protection of national defense, public order, public authority and public safety – such as weapons, cryptology, energy and water supply, networks and communication, as well as food, news media, and research and development
in critical technologies such as cybersecurity, artificial intelligence, semiconductors, biotechnologies, photonic and low emission energies. Lastly, infrastructures, goods and services essential to guarantee the integrity, safety or continuity of the extraction, processing and recycling of critical raw materials have been added to that list. Control can be acquired either directly or indirectly, alone or through a shareholder agreement, and the threshold is usually set at 25% of voting rights in a company registered in France. However, in July 2020, the threshold was reduced to 10% for non-EU/EEA investors seeking to invest in listed companies. This measure has become permanent as of January 1, 2024. The July 2025 guidelines further clarify that
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