French IT company Atos has announced this week that it is selling its loss-making activities to Ketnsk for approximately two billion euros ($2.3 billion). The company, which has been facing financial difficulties, plans to refocus on cybersecurity and cloud assets while reducing its debt. The deal would allow Ketnsk to acquire a 7.5% stake in the remaining part of the business, which would be renamed Eviden.
The headline of an article by the conservative right-wing party Les Rpublicains reads: “We stop selling our most strategic jewels to foreign powers.” French supercomputers, manufactured by Atos and used for virtual nuclear tests, would thus fall into foreign hands.
The group of lawmakers led by Senator Cdrik Perrin from the Senate’s defense committee stated that it is worth paying attention to a powerful foreign player approaching our ultra-sensitive military capacities. They also pointed out that Ketnsk is already involved in energy, medicine, and retail in France but has no experience in IT services.
Perrin told Reuters that there is a historical precedent showing that one day you are a minority shareholder and the next day you are a majority shareholder. There is a real risk to our sovereignty, he said. Lawmakers also question why there was no consideration of offers from French buyers, as a consortium of French companies Astek and ChapsVision has expressed interest in Atos, according to French media.
A spokesperson for Ketnsk told Reuters that the Czech investor intends to remain a passive minority shareholder in Atos. “We will not increase our stake (in the Eviden company) above the announced threshold and we will not play any active role of any kind, thus exerting control,” the spokesperson wrote. Ketnsk also wishes to be a long-term shareholder of Atos’ Tech Foundations division.
Lawmakers consider Ketnsk’s concerns legitimate but believe they are unfounded. “We fully understand the strategic importance of Eviden’s services for France and we intend to fully respect national sovereignty in this area,” the spokesperson added.
France is the only Western European country with absolute autonomy in the use of nuclear weapons. Lawmakers cannot block the sale of the French company; only the government can do so if it believes there is a strategic reason.
What strategic reasons led Atos to prioritize its cybersecurity and cloud assets over loss-making activities, as evidenced by the sale to Ketnsk
Ty Le Figaro could be “Atos sells loss-making activities to Ketnsk for €2 billion to focus on cybersecurity and cloud assets”.
Why would a company selling loss-making assets have an impact on national security concerns?