French Government Takes Legal Action Against Greybull Over Failed Novasco Steelmaker Revival

The French government has launched legal proceedings against the British investment fund Greybull due to its failure to fulfill financial commitments after acquiring the struggling French steelmaker Novasco. This move comes as Novasco faces potential liquidation and a possible loss of about 500 jobs, underscoring significant industrial and social distress in the region.

Minister of Industry Sébastien Martin expressed deep frustration over Greybull's lack of concrete proposals benefiting Novasco's employees despite more than ten days of discussions. Greybull had promised to invest €90 million as part of the 2024 acquisition, with the French state contributing €85 million. However, to date, Greybull has only invested €1.5 million, leaving an €88.5 million shortfall that has adversely affected employees and the local community.

On November 17, the Strasbourg commercial court is expected to rule on the potential takeover of one of Novasco’s four sites, a decision critical to the retention of hundreds of jobs. Amid ongoing deliberations, two partial purchase offers have surfaced: one from a consortium led by Julien Baillon backed by the state and another from Europlasma. The government favors Baillon's proposal due to its stronger industrial plan.

Minister Martin emphasized that the era of impunity for investment funds is over and assured support for any legal actions employees may pursue. He also dismissed the possibility of nationalizing Novasco, stating the government prefers enforcing accountability among investors rather than direct ownership.

This legal action aligns with broader government initiatives to support French industry, coinciding with announcements of €9 billion in new investments at the 'Choose France' summit aimed at revitalizing the national economic landscape.