DALLAS – Flowserve Corporation has announced that the French Ministry of Economy, as part of its Foreign Direct Investment review process, has rejected Flowserve’s acquisition of Velan Inc.

“We are obviously disappointed with the French government’s decision,” said Scott Rowe, Flowserve president and chief executive officer. “We do not believe the decision aligns with the French government’s stated goal of encouraging foreign investment into France’s economy. Throughout this process, Flowserve worked diligently and proactively to address all of the concerns that were raised by the French government. We were optimistic about the acquisition of Velan and the numerous benefits this would provide for both companies and their stakeholders. We sincerely appreciate the efforts of our Flowserve associates and Velan team members who worked so tirelessly on the transaction. We remain excited about the future of Flowserve and will continue to aggressively pursue our 3D strategy.”