The French state will become the largest shareholder in nickel, manganese and lithium miner Eramet, raising its stake to up to 49% from 27% through a €500 million capital increase. Eramet is recovering from falling earnings, rising debt and a management crisis.
At a glance
- The state will buy part of the Duval family's 37% holding, and the family becomes the second-largest shareholder.
- The capital increase is planned between October 29 and the end of 2026.
- Chair and interim CEO Christel Bories said the goal is "not at all to nationalise Eramet".
Background
Eramet is a French mining group producing manganese, nickel and lithium, metals that Europe treats as critical for batteries and steel. It announced a capital increase in February after a slump in earnings and a jump in debt. France has been trying to secure more control over supplies of critical metals.
What happened
Eramet said on Monday that the French state will raise its stake to up to 49%, from 27% now, during a €500 million capital increase later this year, Reuters reported. The state will acquire part of the holding of the Duval family, currently Eramet's biggest shareholder with 37%.
The Duvals will become the second-largest shareholder and renew their shareholder pact with the state. Eramet's board approved the structure of the two shareholders' subscription on October 12.
Why it matters
Chair and CEO Christel Bories said the board chose the French state's proposal as "the best solution" to secure Eramet's finances and strengthen supplies of strategic metals to France and Europe. "The idea is not at all to nationalise Eramet," she said, noting that the state will stay below 50% of capital and voting rights.
France's economy minister, Roland Lescure, pointed to "intensifying international competition and the need to secure supplies of critical metals". "We are making an ambitious commitment by becoming the Company's largest shareholder," he said.
What comes next
Eramet plans to launch the capital increase between its third-quarter sales update on October 29 and the end of the year, and also aims to sell stakes in some assets. The company has been through a management crisis this year, with the firing of chief executive Paulo Castellari. Bories, who resumed the CEO role on an interim basis, said a clearer ownership structure would help recruit his successor.
Our read
Outlook: neutral. The deal strengthens Eramet's finances but does not change its nickel, manganese or lithium output.
What to watch
- Launch of the capital increase after October 29.
- Which assets Eramet decides to sell.
- The appointment of a permanent chief executive.
For information only, not investment advice.
Nickel price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-02: Eramet announces a capital increase as earnings fall and debt rises.
- 2026-10-12: Eramet confirms the French state will become its largest shareholder.
- 2026-10-29: Eramet publishes third-quarter sales, after which the capital increase can start.
Supply Drivers
The capital increase supports Eramet's finances, but not its production directly.
Government Policies
France is raising its stake to secure supplies of critical metals for France and Europe.
What could lift prices
- State backing secures Eramet's financing.
- A clearer shareholding should help recruit a permanent CEO.
What could weigh on prices
- Eramet still faces weak earnings and high debt.
- It plans to sell stakes in some assets.
Country impact
| Country | Impact | Reason |
|---|---|---|
| France | High | The state becomes the largest shareholder of a strategic metals producer. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | A European critical metals producer gets state backing. |
Who gains, who loses
- Eramet: It secures funding and a stable anchor shareholder.
- Existing minority shareholders: A capital increase can dilute holders who do not take part.
Other ways this could play out
- If the capital increase goes through, Eramet's balance sheet should strengthen in early 2027.
- If markets are weak, the state's investment could change with conditions, Bories said.
Price risks
- Nickel and manganese prices affect Eramet's recovery.
- Asset sales and leadership changes add uncertainty.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
