The French state is strengthening its digital sovereignty by acquiring the majority of Alcatel Submarine Networks (ASN). The Minister of the Economy, Antoine Armand, will formalize this takeover of the company, leader in submarine cables, in Calais on November 5, 2024.
A strategic sovereignty issue for the State
The acquisition of 80% of ASN by the French State responds to a strategic need for security and technological independence. Underwater cables, although often invisible, carry 99% of the world's digital data, connecting continents and nations across thousands of miles under the ocean. With this operation, the State aims to secure infrastructure in the face of growing geopolitical risks, particularly in the context of the war in Ukraine. As Minister Armand’s office indicates, “ mastering this technology is a sovereignty issue for France and Europe. »
The investment of the State Participation Agency (APE) is not limited to the repurchase of ASN shares. The government plans to support the industrial development of the company by ensuring that the 1,370 jobs in France, including 600 in Calais, are preserved. By remaining a 20% shareholder, Nokia facilitates the transition while giving France the possibility of ultimately acquiring the entirety of ASN. The EPA emphasizes that “ the submarine cable market is buoyant » with projected annual growth of 10%, a major asset for French industrial competitiveness.
ASN, a key player in global digital infrastructure
ASN is not limited to a manufacturing role: the company, founded in 1858, is historically a key player in the sector, laying and maintaining strategic cables such as those linking Europe to Africa. With 33% of the global market, it competes with the giants TE SubCom (United States) and NEC (Japan). This expertise gives France a unique status in Europe, where it becomes the only country capable of competing with these players for transcontinental infrastructure projects. At the European level, Brussels even recommended in February 2024 to strengthen the resilience of submarine cables, underlining the importance of this acquisition.
If the strategic dimension of this acquisition is undeniable, the operation also promises to be profitable. ASN generates more than a billion euros in turnover, and according to Bercy estimates, this could double or even triple in the years to come. With the rise of streaming and teleworking, demand for telecommunications infrastructure is increasing, offering ASN sustainable growth prospects.
