A few days before the first round of legislative elections, the French state is ratifying its policy of securing strategic assets. It has just acquired 80% of Alcatel Submarine Networks (ASN), the former submarine cable division of Alcatel held since 2015 by the Finnish Nokia.
Announced Thursday June 27 by Bercy, the purchase of a majority of this group, considered a crucial asset for France and which manufactures, lays and maintains submarine cables, “demonstrates the State’s capacity to invest in French companies in order to support and develop their strategic activities”, indicated the Ministry of the Economy in a press release.
100 million euros
According to an estimate from Bruno le Maire’s office, the State would have to pay around 100 million euros to acquire this company, one of the world leaders in the sector and valued at 350 million euros. “This is an essential strategic activity for France since it concerns the supply of internet connections with foreign countries,” the ministry is told, “in a context where we see that the cable infrastructures under -sailors may be subject to attack.
Considered critical, submarine cables provide 99% of global digital communications and any damage caused to them can therefore have significant consequences in terms of communications.
“ASN has undergone a significant transformation in recent years and occupies a strong position in the market,” commented Pekka Lundmark, CEO of Nokia, in another press release. “I am happy that we have found a natural owner for the company,” he added.
Negotiated for almost a year, the agreement ultimately provides for the possibility for the State to acquire 100% of the company’s capital and for Nokia to keep a minority share in an initial phase to facilitate the transition. The transaction should be final by the end of the year, if the conditions precedent are lifted.
Right of inspection
Having come under the Nokia umbrella after the merger with Alcatel-Lucent in 2015, ASN was the subject of negotiations in 2019 for a takeover by the French equipment manufacturer Ekinops, but the sale process was interrupted and the State had a right of review in the event of a sale. “Nokia presented a certain number of potential buyers who were not necessarily suitable,” underlines Bruno Le Maire’s office, which prompted the ministry to take a position.
In competition with two major players, the American TE SubCom and the Japanese NEC, “the company is on a growth trajectory, and between 2019 and today, turnover has almost doubled”, they say at Bercy.
ASN, which achieved a turnover of more than one billion euros in 2023, has around 2,000 employees, two-thirds of whom are in France. Although bought by Nokia, the company’s headquarters and main factory remained in Calais and its boss, Alain Biston, is also French.
The announcement of this acquisition was made three days before the first round of early legislative elections which promise to be difficult for the presidential majority. “It is a decision which is within the scope of what the government has the right to do since we are not in a period of current affairs”, assures the cabinet of Bruno Le Maire, who argues that “the associated credits were passed in the finance law.
Shadow of Atos
Another major issue, the fall of Atos, heavily in debt and struggling to find a way out of the crisis, has also been mobilizing the government for several months, anxious to preserve the most sensitive parts for its sovereignty of this former flagship of IT.
In mid-June, the State made an offer of 700 million euros to buy its activities deemed strategic, including supercomputers, contracts with the army and cybersecurity products, in order to prevent them from falling. in the hands of foreign actors.
The State also granted a loan of 50 million euros to the company and acquired a “preferential share” allowing it to veto certain operations at the level of Bull, the subsidiary which builds these supercomputers.