Areva, EDF to Retain Majority of Nuclear Reactor Business Unit

Areva, EDF to Retain Majority of Nuclear Reactor Business Unit

The French government wants Electricite de France (EDF) and Areva to preserve a 66 percent stake in Areva’s nuclear reactor building unit.
EDF would own 51 percent and Areva would own 15 percent of Areva NP, with outside investors buying the remaining 34 percent share, a government official told Reuters. The move would limit the amount of funds the French government would have to spend to save Areva. EDF is expected to finalize its offer for Areva NP by the end of November.
EDF has said Areva NP is valued at 2.7 billion euros ($3 billion). The French government owns more than 85 percent of both companies, and is brokering the deal between them. The price paid by new investors will determine how much more money Areva will need to recover, the article said. Japan’s Mitsubishi Heavy Industries Ltd. has reportedly shown interest in buying a stake in Areva NP.
Areva NP reported a loss of 4.8 billion euros ($5.2 billion) in 2014 due to delays at new nuclear builds and a decline in business following the 2011 Fukushima accident. Areva NP has said it would cut between 5,000 and 6,000 jobs across the group, including 3,000 to 4,000 in France, by the end of 2017, and plans to sell assets to raise 400 million euros ($437.1 million), in addition to 1.2 billion euros ($1.3 billion) in new financing.
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