Government strengthens control over Alcatel Submarine Networks (ASN), a key player in the submarine cable sector

On Tuesday, November 5 in Calais, the French Minister of the Economy and Finance, Antoine Armand, will make official the purchase of 80% of ASN, a flagship company specializing in the manufacture and installation of submarine cables. The purchase, which values ASN at 350 million euros, follows a promise to purchase signed in June with Nokia, ASN’s owner since 2015, for 100 million euros.

Antoine Armand “will sign the ASN acquisition contract” in the presence of the 600 employees of the Calais site, out of the 1,370 employees ASN has in France. The mayor of Calais, Natacha Bouchart, will also be present at this symbolic signing.

A strategic sector for national sovereignty

The acquisition of ASN is part of the French government’s strategic vision for France’s digital sovereignty. In an interview with *La Voix du Nord*, Minister Armand reiterated that this investment is part of a drive to strengthen the country’s critical infrastructures. “It’s a strategic investment for our national sovereignty, for critical infrastructures, and for the national and European industrial strategy currently being deployed”, he asserted.

Armand also stressed that this investment is also intended to be profitable. ASN, which already generates sales of one billion euros, could see its revenues double or even triple over the next few years. “Submarine cables are one of tomorrow’s critical infrastructures. Mastering these networks is vital to guaranteeing our connection to the world, a rapidly expanding sector”, he added. Submarine cables carry the bulk of the world’s digital communications, making them an area of vital importance for the French government.

A long-term commitment from the French government

The agreement with Nokia leaves the door open for the French state to take full control of ASN, with Nokia retaining a 20% minority stake for the time being to support the transition. The Agence des participations de l’État (APE) will be the main shareholder, and aims to boost ASN’s business and accelerate its growth.

By early 2025, Antoine Armand will present a global plan to develop the portfolio of public companies managed by the APE, which currently holds 85 stakes worth an estimated 180 billion euros in June. The aim is to strengthen the impact of these strategic companies on the French and European economies, by pursuing forward-looking investments.