Areva Plans Nuclear Fuel Cycle Spin Off; Sales of Assets to EDF

Areva plans spin off company

Areva said it plans to spin off a separate business entity that focuses on the nuclear fuel cycle as it attempts to recover from years of financial losses.

Areva presented its 2016-2020 roadmap, in which it plans to restructure the group and create a separate entity, temporarily named New Co. New Co. will focus on the mining, front end and back end operations. Areva’s nuclear reactor division will be transferred to the control of France-based EDF, as previously announced. Areva and New Co. are expected to benefit from a capital increase in the combined amount of 5 billion euros ($5.6 billion). The French State would invest in both Areva SA and New co. in the beginning of 2017 and will hold a minimum of two-thirds of New Co. capital, with the balance held by strategic investors.

The subsidiaries of Areva TA, Areva Energies Renouvelables and Areva NP would continue to be held by Areva SA until the date of their sale. Areva NP’s operations will be sold to EDF, while the contract for the Olkiluoto 3 nuclear project in Finland will remain in the consolidation scope of Areva SA until it is completed. Areva’s radiation measurement unit, Canberra, will be sold in the second half of 2016.

Areva announced losses of 2.04 billion euros ($2.2 billion) in 2015.

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