France increased the state’s influence in foreign buyouts and investment in “strategic” sectors. French Minister of Economy and Industry Arno Montebourg signed a special decree last week, Bloomberg reports. The powers will cover the key sectors of energy, transport, water, health and telecoms.
This action was caused by a possible conflict around the French energy and transport giant Alstom. The US General Electric made a proposal to buy it for $17 billion.
The suggestion stirred up the French government. The authorities are openly opposed to the deal and have sought a European partner for Alstom to replace GE. At the same time, the board of Alstom has already signaled that it prefers the GE offer for its energy activities. Meanwhile, the German company Siemens has shown some interest in the deal. In a short letter to Alstom late last month, Siemens had outlined a proposal worth $14.5 billion, offering to exchange part of its rail business plus cash in exchange for Alstom's power assets. Earlier, Siemens tried repeatedly to acquire Alstom, but every time it failed due to resistance of the French government.
