The Government opposed the sale to the American Flowserve of the companies Segault and Velan SAS, specialized in valves for submarines and nuclear power plants, under the control of foreign investments, we learned this Friday from consistent sources.
Foreign investments in France (IEF) are subject to the control of the Ministry of Economy whenever a non-European actor wishes to acquire 10% or more of the voting rights of a listed French company (or 25% of the rights of a non-listed company) that operates in a strategic sector.
The Minister of Economy, Bruno Le Maire, “made the decision to reject the two acquisitions, considering that the commitments that could have been proposed could not sufficiently reduce all the risks associated with the acquisition”, as we said in the minister’s office. .
A $245 million deal
Velan bought Segault, based in the Paris region, in 2007, without encountering opposition. Velan SAS, Velan’s French subsidiary based in Lyon, had been created by the Canadian group and was therefore not subject to IEF legislation. The Canadian group closed an agreement in January with Flowserve to be purchased by the American company for 245 million dollars (about 230 million euros).
The French refusal has the consequence of frustrating the acquisition of the entire Velan group by Texas-based Flowserve. “In view of the latest events related to the rejection of French regulations, Flowserve (…) intends to terminate the agreement,” the American group announced in a press release.
Segault employs 80 people and had a turnover of 13.7 million euros in 2020. The company supplies, in particular, the valves for the nuclear boiler rooms that equip French submarines. The Minister of the Armed Forces, Sébastien Lecornu, announced in May that France would veto its passage under US control. But there was still doubt about Velan SAS.
This company, with 280 employees and a turnover of 70 million in 2022, produces valves that equip all French nuclear power plants and more than 350 nuclear reactors around the world. In 2022, France controlled 325 foreign investments, according to the General Directorate of the Treasury. Of these operations, 194 were prohibited, 70 authorized under conditions and 61 validated without restriction.
Source: BFM TV
