Three questions on the takeover of the French heat pump manufacturer Groupe Atlantic by the Japanese-American company Paloma Rheem

The French flagship of the energy transition has announced the signing of an agreement which provides for a majority stake in its capital. The Ministry of the Economy declares for its part that the operation “must be subject to prior authorization”.

It is the French number one in heat pumps. The Atlantic Group declared, Monday, December 22, that it was in the process of being acquired by the Japanese-American group Paloma Rheem. The Vendée company announced the signing of an agreement which provides for a majority stake in its capital by the Tokyo-based company. The latter itself is the result of the merger of two Japanese companies, Paloma and Fujitsu General, and the American company Rheem. Here are three questions that arise about this transaction that the French government says it is monitoring carefully.

1 Who are the groups Atlantic and Paloma Rheem?

The Atlantic Group, based in La Roche-sur-Yon, in Vendée, was founded in 1968 by engineers Pierre Lamoure and Paul Radat. It now has 31 industrial sites around the world. It not only manufactures heat pumps, but also boilers, water heaters and radiators. Owner, among others, of the Atlantic, Thermor and Sauter brands, it generates nearly 3 billion euros in turnover.

But since the death of the founders, explained Les Echos at the end of 2024, the heirs of the two families “are torn apart over the way the business should be run”. The Lamoures had decided to sell their stake, but the negotiations failed, reports the economic daily in its investigation. This is where Paloma Rheem, specialist in “in the manufacture and marketing of air conditioning equipment, hot water production, heating and kitchen equipment”specifies the Atlantic Group in its press release.

Paloma Rheem, which employed 19,000 people at the end of 2024, and Groupe Atlantic, which has 12,000 employees, know each other well. The French company has been distributing Fujitsu General products (bought in early January 2025 by Paloma Rheem) for more than thirty years, in France and the Benelux.

2 What does the agreement include?

The signed agreement provides for a majority stake in Paloma Rheem Holdings, details Atlantic in its press release. Atlantic “will become an autonomous entity within the group” and a portion of the group’s historic family shareholders will remain in the company’s capital. Furthermore, the group’s headquarters will remain in France, we can still read. “The current management team will remain in place to ensure the strategic and operational continuity of the group”we also learn.

“Paloma Rheem has constantly demonstrated its ability to invest in the companies it acquires (…). This operation gives us the means to sustainably strengthen our competitiveness”In “a context of increased international competition”particularly Chinese, declared the chairman of the board of Groupe Atlantic, Damien Carroz.

The amount of the operation has not been made public. “The transaction should be finalized by mid-2026”says Atlantic.

3 Why is the government monitoring the transaction?

The French Ministry of Economy and Finance, also responsible for Industry, told AFP on Monday evening to follow “very close” the file. Heat pumps are at the heart of France’s electrification strategy carried out by the government in order to accelerate the transition to electricity in sectors such as housing, which are still very dependent on the importation of fossil fuels, which are costly and emit a lot of greenhouse gases. “Thanks to our products and services, we contribute to the energy transition of buildings”Atlantic also mentions on its site.

The operation “must be subject to prior authorization from the ministry as part of the control of foreign investments in France”subject to checks carried out on the eligibility conditions of this file for this procedure, explained Bercy. “If we have a foreign investor who comes to develop Atlantic, preserve the industrial footprint, make it what it already is, but better, one of the world leaders in energy transition, welcome. If it’s to reverse engineer, cut, break and I was going to say take the money and get away, that’s no”warned Tuesday on BFMTV the Minister of Economy and Finance, Roland Lescure, who reiterated that he was “vigilant”.

A spokesperson for Groupe Atlantic specified that Bercy had been warned of this operation a few days ago. On the procedure itself that Bercy is launching, the company has made no comment.