The French government will increase its stake in vehicle manufacturer Renault to 19.7% from the existing 15% with an investment of around €1.23bn.
French industry ministry said that the government has purchased 9.6 million Renault shares on the market, and is yet to buy 4.4 million shares further.
The acquisition of additional shares in Renault is part of the government's efforts to secure double voting rights for itself and other investors as per the country's Florange law.
According to Florange law, shareholders who have shares of a public company for more than two years will be eligible to get double-voting rights. However, the company's shareholders can adopt a resolution to override the law.
The French government opposed the proposed resolution by Renault's directors to shareholders last month. Shareholders are scheduled to vote on 30 April.
The Wall Street Journal quoted French Economy Minister Emmanuel Macron as saying: "This operation shows the state's willingness and ability to use all arms available to investors to promote a progressive, long-term capitalism which will serve the development and the employees of companies."
With the latest purchase, the French government will be Renault's largest shareholder, while Nissan Motor, Norges Bank Investment Manager and Daimler will have 15%, and 4.2% interests respectively.
