A decree implementing the “Florange Act” has been published. The implementing decree—n° 2015-1378 (31 October 2015)—specifies the scope of activities and considerations by an acquiring entity in instances when a plant closure is being considered.
The “Florange Act” was established by law 2014-384 (29 March 2014), and amended French law in matters concerning takeover bids and listed companies. Among the measures in the legislation are requirements that generally provide:
The implementing decree clarifies:
Noncompliance with the requirement to seek a buyer could be subject to various sanctions, such as the jobs-saving plan not being validated. Also, the French authorities could seek to re-claim all public aid previously provided the company.
For more information, contact a tax professional with KPMG’s French tax center in New York:
Gilles Galinier-Warrain | +1 212-954-8605 | firstname.lastname@example.org
Or contact a tax professional with Fidal* in Paris:
Olivier Ferrari | +33 (0)1 55 68 14 76 | email@example.com
Olivier Schmitt | +33 (0)1 55 68 15 92 | firstname.lastname@example.org
* Fidal is a French law firm that is independent from KPMG and its member firms.
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