nuclear-news

French defense minister opposes American takeover of nuclear firm

Economy ministry makes the final ruling.

BY GIORGIO LEALI, MAY 24, 2023 https://www.politico.eu/article/french-defense-ministry-to-block-american-takeover-of-nuclear-firm/

PARIS — France’s defense minister Sébastien Lecornu said he would veto the takeover of nuclear-submarine parts supplier Segault by American industrial machinery giant Flowserve.

“The defense ministry will veto the loss of operational control over company Segault,” Lecornu told French lawmakers Tuesday evening. “I never announced it publicly, but it’s done,” he said.

“For us it’s simple: we don’t want Segault to be controlled by an American company,” said an official from the defense ministry who was not authorized to be named.

France’s economy ministry, which has the final word on the file, was however quick to stress that no decision had been made. “The foreign investment screening procedure is ongoing,” said a French economy ministry spokesperson, declining to comment on the potential outcome.

While the defense ministry participates in the decision-making, the French economy ministry makes the final ruling.

France-based Segault is currently owned by Canada’s industrial valves group Velan, which is being bought by American industrial machinery giant Flowserve. If the deal goes through, Segault would become American-controlled, raising concerns in Paris’ halls of power that Washington would then have access to strategic French technology.

Paris last month confirmed that it was looking for a French buyer, as the file turned into a test of France’s industrial sovereignty ambitions.

Segault supplies components for nuclear-propelled submarines built by state-owned shipbuilder Naval Group and also makes industrial valves that are used on France’s flagship Charles de Gaulle aircraft carrier.

May 26, 2023 - Posted by Christina Macpherson | business and costs, France