French Government Asserts Control Over Atos' Strategic Assets
French Economy Minister Bruno Le Maire announced on Tuesday, May 28, that strategic activities, especially those pertaining to the control and command of French nuclear power plants owned by IT giant Atos, will remain under state control. This move aims to ensure that vital national security components are not transferred to foreign ownership. Le Maire emphasized that strategic operations will remain within the purview of public authorities, mentioning a potential takeover by EDF or a company closely associated with EDF.
Bercy, the French Ministry of Economy and Finance, has already shown considerable interest in Atos' sovereign activities, which include supercomputers used for nuclear deterrence, military contracts, and cybersecurity products. The government has committed to extending a €50 million loan to assist Atos in stabilizing its financial situation and has acquired a strategic 'preferred share' to veto specific actions by Bull, the Atos subsidiary responsible for supercomputers.
However, Worldgrid, a critical Atos subsidiary that designs control systems for nuclear power plants, is not currently classified within the state-secured perimeter and could potentially be sold. Bruno Le Maire reassured that efforts are underway to ensure that Worldgrid remains under public control, reiterating the importance of retaining the control of nuclear power plant orders within French oversight. Atos is facing significant financial challenges with a gross debt of around €5 billion. The company needs €1.1 billion in liquidity for its operations during 2024-2025 and aims to cut its gross debt by €3.2 billion to safeguard its activities.
Financial Stability and National Security
Bruno Le Maire has been actively involved in monitoring the situation at Atos for several months and has taken decisive actions to support the company. He reiterated the stance that all strategic aspects, including supercomputers, cybersecurity, and military-related activities, will stay under public control. This sentiment was echoed in a bipartisan appeal from parliamentarians urging all public and economic entities to ensure that Atos remains under the French flag to maintain strategic autonomy. Among the voices calling for Atos' independence were leaders from various political parties, emphasizing the unified stance on the issue.
- In addition to ensuring strategic functions remain under national control, the government’s intervention is a step towards mitigating Atos' looming financial crisis. By stabilizing the financial condition of IT leaders like Atos, the French government seeks to protect not just national security interests but also bolster technological robustness, particularly in light of the forthcoming Paris Games. Atos, expected to be a technological pillar in the event, needs financial restructuring to continue its critical contributions.
- The firm announced it is examining three out of four proposals for financial restructuring, aiming for a resolution by May 31. This solution is intended to be 'acceptable' to its creditors while ensuring business continuity and strategic autonomy. Atos highly values maintaining its independence and integral role in France's technological advancements, as highlighted by numerous government officials and parliamentarians.