The Elysee imposes a strategic alliance between EDF and Areva
July 27, 2010 – 6:10 pmEDF and Areva will conclude a strategic partnership agreement covering all their areas of common interest in nuclear power, said Nicolas Sarkozy.
The possibility of a stake in the capital of EDF, Areva will be considered in the context of this agreement, the Elysee said in a statement.
A capital increase of Areva, "up to a maximum of 15%, will also be implemented as scheduled before the end of 2010 to finance the investments needed to develop the group.
The French presidency said that negotiations are already underway with industrial and financial investors, but said nothing about the future of Anne Lauvergeon head of the nuclear group.
"The problem has never arisen in terms of speakers for us," said a spokesman for Areva to question whether the news reinforced the president's Elysee Palace in his post.
The spokesman added that the group was pleased with the decisions announced by the state, recalling Anne Lauvergeon called his vows in March last overhaul of the partnership with EDF.
EDF has, meanwhile, declined comment.
Areva is currently controlled over 90% by the State, must carry out a capital increase estimated at three billion euros, which should mark the entry in its capital of international shareholders.
The operation aims to secure funding for an investment program of nearly ten billion euros by 2012.
Sovereign wealth funds from Qatar and Kuwait, and the Japanese group Mitsubishi Heavy Industries, are anticipated to participate in this fundraising.
The capital increase would be in addition to the sale last April by Areva's transmission and distribution division (T & D) to Alstom and Schneider Electric for 4.1 billion euros.
This decision of the Elysee was taken after examining a report on the future of the French nuclear industry commissioned in October 2009 and drafted under the authority of former President Francois Roussely EDF.
Nicolas Sarkozy had convened a "Council of nuclear policy.The Elysee said that decisions taken within that framework "aimed at strengthening the French nuclear industry, strategic element of energy policy and industrial France."
Regarding the export of nuclear, EDF and Areva will develop, "whenever the customer needs so require, an organization based on the expertise of an architect and operator-assembler EDF" , said the French presidency.
This agreement, non-exclusive, however, deliver not affect the ability of both companies to cooperate with other industrial sector.
THE LESSONS OF THE FIASCO OF ABU DHABI
The products offered by the French industry will also be expanded to better meet the diverse needs of customers.
Thus, the certification of reactor TTY (1,100 MW), smaller than the PRT will continue.EDF, GDF-SUEZ and possibly other utilities will be involved.
The TTY is being developed by Areva and Mitsubishi.
The French government is striving to learn from the loss of a major contract to build four nuclear reactors in the UAE for the benefit of South Korea in late 2009.
In front-end, the partnership agreement between EDF and Areva "will aim to reinforce the security and competitiveness of the fuel supply," said the Elysee.
"To build capacity for the French supply of strategic metals, industrial partnerships for mining of Areva, which may include a capital dimension, will be discussed," added the French Presidency.
Nicolas Sarkozy had also asked the government to propose additional measures, including on the coordinated action of State services, strengthening research and development and human potential, and on working conditions employees of the nuclear industry.
The report Roussely, presented in May at the head of state, had been classified defense secrets, especially to avoid leaks.
The Elysee has released the summary Tuesday night on its website, www.elysee.fr.
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