Heightened Scrutiny of Foreign Investments in France: New Set of Foreign Investment Measures Adopted in France and Applicable as from April 1, 2020 

Sullivan & Cromwell LLP - April 22, 2020

A new set of foreign investment screening measures became applicable in France as from April 1, 2020.  The new screening measures follow from reforms to the French foreign investment regime which were adopted in May 2019 pursuant to new French legislation entitled Plan d’Action pour la Croissance et la Transformation des Entreprises, also known as “Loi Pacte,” and related regulations adopted on December 31, 2019.  Both the Pacte law and decree followed from the adoption in March 2019 of the EU Regulation establishing a framework for the screening of foreign direct investments into the Union.  The new screening measures in France significantly strengthen the French State’s control over in-bound foreign investment, include a review process inspired by the U.S. CFIUS regime, and have already begun to impact certain acquisition transactions involving French technology targets.