French government suggests Areva sells reactor unit to EDF

• 9 years ago (2015-04-08)
• Junior Isles

Europe 1061 Nuclear 640

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The French government has suggested that Areva sells the division responsible for manufacturing, installing and servicing nuclear reactors to state-controlled power utility Electricité de France SA in a bid to rescue the loss-making nuclear engineering firm and restructure the industry. Areva’s Chief Executive Officer Philippe Knoche revealed the news in a meeting with union representatives last week.

Knoche told the representatives that the government was evaluating a partial or total sale of Areva NP, which handles the company’s core business, to EDF for an amount still to be determined. Knoche also said other options were discussed.

The government proposal is the latest in an ongoing effort to keep the struggling French company afloat. Areva is currently working on a plan to sell assets, cut costs, reduce capital expenditure and start talks with unions over possible job cuts.

Knoche met the unions, which oppose the sale of the nuclear reactor business, after French Economy Minister Emmanuel Macron said he was asking EDF rescue Areva by deepening their industrial and possibly financial ties.

EDF and Areva, which are both majority-owned by the French state, have to cooperate better over the construction of nuclear reactors and tendering for international business, Macron said.

A spokeswoman for Macron said a solution for Areva would be found by the end of the month.