nuclear-news

Engie not willing to acquire troubled nuclear company AREVA

Engie will not acquire struggling French nuclear group Areva, Ft.com 21 May 15  Michael Stothard in Paris Engie would consider working with struggling French nuclear group Areva on some business lines but is not looking for any full-blown acquisitions to help rescue the company, according to the chief executive of the utility.

“If we consider something, it would be in co-operation with Areva, not simply an acquisition of some assets,” Gérard Mestrallet told the Financial Times on the sidelines of a business and climate change conference in Paris

The comments come as the French government looks to elicit the aid of French companies to help rescue Areva, which reported a €4.8bn loss last year.

Areva, which is 87 per cent government-owned, has fallen victim to a slump in global demand for new reactors that followed the 2011 Fukushima disaster in Japan, as well as crippling cost overruns at key projects…….

Any deal between Areva and Engie would be likely to come alongside a much larger agreement with EDF, which earlier this week outlined its preference for a broad rescue package to acquire Areva NP, the division that designs, manufactures and maintains nuclear reactors.

“The more ambitious proposal from EDF will preserve the technical expertise of Areva’s reactor business and create the possibility of partnerships with outside groups from France or elsewhere,” said Jean-Bernard Lévy, EDF’s chief executive.

Another option on the table would see EDF, which is 85 per cent state-owned, simply recruit 1,200 Areva engineers who specialise in nuclear safety. This would require a greater injection of capital in the group from the government, however.

It is ultimately up to Paris to decide between these two options. A decision could come as early as June ……….3.http://www.ft.com/intl/cms/s/0/3d592a50-ffb8-11e4-8c46-00144feabdc0.html#axzz3aoqg2DDh

May 22, 2015 - Posted by Christina Macpherson | business and costs, France, politics