France will nationalise disputed shipyard in standoff with Italy- Le Monde

The French government has decided to nationalise the STX France shipyard in an ownership standoff with Italy, Le Monde newspaper reported on Thursday.

The Economy Ministry would not comment on the report when asked by Reuters, but said it would hold a news conference on the subject at 3:00 pm (1300 GMT).

Economy Minister Bruno Le Maire had given the Italians until Thursday to accept an offer for 50/50 ownership of the shipyard, brandishing the threat of a temporary nationalisation to buy time to find another solution if the offer were rebuffed.

"The aim is not to nationalise Saint-Nazaire, but we have to temporarily," Le Monde reported a source close to the matter as saying.

Italian state-owned shipbuilder Fincantieri FCT.MI agreed in May to pay 79.5 million euros ($93.20 million) for two-thirds of STX France, which is being sold following the collapse of South Korean parent STX, but the Italian bid has raised fears about French jobs at the Saint-Nazaire site on the Atlantic Coast.

The French government is also concerned about the yard's strategic defence importance.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)