European Union approves state aid to Areva

eu flag european union elp

The European Commission has approved a planned $4.76 billion capital injection in Areva by the French government, saying the restructuring plan for the company met state aid guidelines.

There are however conditions going with that approval. These include a positive conclusion to tests being conducted by the French Nuclear Safety Agency, and approval of the divestment of Areva’s reactor business under EU merger rules.

The restructuring plan “will allow the company to become viable without unduly distorting competition in the Single Market,” the commission said.

EU rules allow state support to ailing companies but only if the firms have a reasonable prospect of viability and the program is designed to have a limited impact on competition.

Margrethe Vestager, Commissioner responsible for competition policy, said: “Today’s decision paves the way for a viable future for Areva based on a sustainable restructuring plan. The plan strikes the right balance between improving the group’s competitiveness and limiting distortions of competition created by the public financing.”

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs