France blocks US takeover of Canada-owned French nuclear valve makers
06/10/2023 12:31
PARIS, Oct 6 (Reuters) - France blocked a deal that
would have seen the takeover of two Canadian-owned French maker
of valves used in nuclear reactors because it did not think
commitments made by U.S. bidder Flowserve were sufficient, a
finance ministry source said.
Flowserve, which makes pumps and valves, said on Thursday it
was dropping its $245 million takeover of Montreal-based Velan,
whose French subsidiaries Segault and Velan SAS make valves used
in nuclear plants, submarines and aircraft carriers.
"The minister (Bruno Le Maire) took the decision to reject
the two acquisitions because the commitments to reduce all risks
associated with the deal were not sufficient," the French
finance ministry source told journalists on Friday.
The French government has extensive powers to vet proposed
takeovers of French companies that it considers to be
strategically sensitive, though outright rejections are rare.
Flowserve Chief Executive Scott Rowe said on Thursday that
the firm had sought to address all of the French concerns.
"We do not believe the decision aligns with the French
government's stated goal of encouraging foreign investment into
France's economy," Rowe said in the statement announcing that
Flowserve was dropping its deal.
While President Emmanuel Macron has made a big push to
promote foreign investment in France, he has also championed the
idea of reinforcing Europe's strategic autonomy from other
regions, particularly in terms of defence and energy.
Some French senators had aired concern about the takeover,
in particular that it could mean the U.S. government could order
Flowserve to hand over information from its French subsidiaries.
(Reporting by Leigh Thomas; Editing by Alexander Smith)
((leigh.thomas@thomsonreuters.com; +33 1 4949 5143;))