France moved to nationalize the shipyard at Saint Nazaire where several big cruise companies have ships under development.
The move came after a standoff over ownership of the yard, currently majority-owned by a South Korean firm under the name STX France. A contract had been signed to sell the majority ownership to the Italian firm Fincantieri, with France retaining a minority stake.
Recently elected French president Emmanuel Macron is seeking to revise the balance of ownership to 50-50.
In addition to building cruise ships, the Saint Nazaire yard produces warships. It is the only yard in France capable of building aircraft carriers.
Acquiring the two-thirds stake it doesn't own would cost the French government about 80 million euros, according to the French newspaper Le Figaro.
French economy minister Bruno Le Maire said France doesn't plan to keep the yard under state control, but rather would use the move to buy time for additional negotiations with Italy.
Among the cruise lines that have orders with STX France are Royal Caribbean Cruises Ltd. and MSC Cruises. MSC is building t he MSC Belissima and two Meraviglia-plus ships there. RCCL contracts include the Symphony of the Seas, a fifth Oasis-class ship, the Celebrity Edge and other Edge-class ships.