nuclear-news

French govt tries to settle nuclear power companies’ brawl

“Knives are out, the fight is far from being over,” a person familiar with the matter told Dow Jones Newswires.

‘Knives Are Out’ in French Nuclear Spat – WSJ By Geraldine Amiel, July 28, 2010 The French government Tuesday announced a far-reaching alliance between state-controlled utility Electricite de France and state nuclear engineering group Areva, that makes EDF Chairman and Chief Executive Henri Proglio the country’s undisputed nuclear team leader.

But if French President Nicholas Sarkozy had hoped the arrangement would put an end to a bitter rivalry between Proglio and “Atomic” Anne Lauvergeon, Areva’s chief executive, he may well be disappointed.

“Knives are out, the fight is far from being over,” a person familiar with the matter told Dow Jones Newswires.

The government’s announcement followed a months-long strategic review of the country’s nuclear sector. Sarkozy had been expected to announce a joint French industrial effort meant to capture overseas contracts.

Instead, he elevated nuclear giant EDF to pole position and opened the door for the company to raise its stake in Areva beyond the current 2.8%……..

Another issue is that U.S. based Constellation Energy Group could exercise an option that would force EDF to buy as much as $2 billion of assets, another potential drain on EDF’s finances………..

EDF also has gotten creative as it meets state rules to set aside funds to close down and clean up ageing nuclear reactors–though this is another potential drain on the balance sheet.

So, right now, EDF probably couldn’t afford to substantially increase its stake in Areva……

‘Knives Are Out’ in French Nuclear Spat – The Source – WSJ

July 29, 2010 - Posted by Christina Macpherson | business and costs, France | antinuclear, AREVA, France, nuclear costs, nuclear technology, reactors