France

France

Strengthens its FDI screening mechanism with "PACTE Act"

22 May 2019

On 22 May 2019, changes to France’s mechanisms to manage acquisition- and ownership-related risk to its essential security interests came into effect. The reform, incorporated in the law commonly referred to as loi PACTE, brings enhanced follow-up on mitigation agreements; stronger injunctions and sanctions in case of non-respect of rules and mitigation agreements; stronger transparency of the mechanism by the implementation of a parliamentary control and an obligation for the French Government to publish an annual report including aggregate statistics about the procedure.