Business · Markets · 2 hrs ago
French state’s company portfolio rose by €20.5 billion in a year
France’s state-owned company portfolio was worth €229.6 billion at the end of June, up €20.5 billion from a year earlier.
The portfolio is managed by the State Shareholdings Agency, which holds stakes in 87 companies and organizations, including Orange, EDF and SNCF.
Its value rose partly because of strong share prices at companies such as Orange and Engie, and a recovery at EDF and SNCF.
The agency’s portfolio has grown by more than €100 billion in five years, but it also received over €45 billion from the state budget to support companies during the Covid crisis and buy out EDF’s minority shareholders.
That budget funding has nearly dried up, while company dividends go directly into state accounts.
The agency may therefore need to sell or reduce stakes to pay for future investments, even as some companies seen as important to national independence need support.
The state is increasing its stake in mining group Eramet as part of a €500 million capital increase, and it has recently supported satellite operator Eutelsat and bought supercomputer maker Bull from Atos.
The French state’s portfolio managed by the State Shareholding Agency was worth €229.6 billion at the end of June.
That was €20.5 billion more than a year earlier, according to the agency’s annual report.
The increase reflected strong share performance at companies including Orange and Engie, as well as recoveries at EDF and SNCF.
Despite the portfolio’s growth, the agency has limited funding available and may need to sell or reduce stakes to finance future operations.
The state increased its stake in mining group Eramet as part of a €500 million capital increase announced on 12 October.
- Who
- France’s State Shareholding Agency, which manages the state’s holdings in companies.
- What
- The agency’s portfolio rose in value by €20.5 billion in a year, reaching €229.6 billion.
- When
- The portfolio value was measured at the end of June. The report was published on 12 October.
- Where
- France.
- Why
- Strong share performance at companies including Orange and Engie, alongside recoveries at EDF and SNCF, raised the portfolio’s value.
This story does not have two clearly opposing sides.
The State Shareholding Agency’s portfolio was valued at €229.6 billion.
The agency’s activity report was published, showing the portfolio had gained €20.5 billion over the year.
Eramet announced a €500 million capital increase involving an increase in the state’s stake.
- Portfolio value
- €229.6 billion at the end of June
- Annual increase
- €20.5 billion
- Companies held
- 87 entities
- State support during Covid-19 crisis
- More than €45 billion from the general budget
- Eramet capital increase
- €500 million
What people are saying
The state shareholder is getting richer, but it has less room for manoeuvre
Sources
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