EDF offers Areva $2bn offer for nuclear reactor unit

EDF has offered Areva a €2 billion ($2.2 billion) approach for Areva’s nuclear reactor business unit.

According to The Telegraph, the proposal is expected to open up negotiations between the two companies and the French government, which owns 84 percent of EDF and 87 percent of Areva. The government will have the final word on any potential deals. EDF said in the article that if it takes over the reactor business, it wants guarantees against Areva’s liabilities in Finland at the Olkiluoto 3 site, which is currently years behind schedule and millions over budget.

Engie, formerly known as GDF Suez, and Chinese companies China General Nuclear Power and China National Nuclear Corp., have also shown an interest in Areva’s business.

Areva announced in March that it recorded €4.8 billion ($5.2 billion) in losses for 2014 due to delays at Olkiluoto and Flamanville in France as well as a slowdown in the nuclear industry from the 2011 Fukushima Daiichi nuclear accident. Areva was also set to hold a 10 percent stake in the €24.5 billion ($26.6 billion) Hinkley Point C nuclear project in the UK, but that stake is up in the air.

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