Areva, the struggling French nuclear group, received a firm €500m offer for a 10 per cent stake in a new nuclear fuel company that will be split off from its parent in a wider reshaping of the French nuclear industry. Areva is preparing to split off its uranium mining and nuclear fuel activities into NewCo as part of a government-backed rescue after the group was forced to the brink of collapse under the weight of its own debt this year. Earlier this year it was agreed that the other half of Areva, the troubled reactor business, would be taken over by EDF, the larger French nuclear group, in a deal that values that part of the business at about €2.5bn. Areva did not say on Thursday who had made the offer for 10 per cent of NewCo. But a group comprising Mitsubishi Heavy Industries and Japan Nuclear Fuel had previously shown an interest in taking a stake, however, according to people close to the situation. EDF, the other major company in the sector, lost more than a tenth of its stock market value on Thursday after it warned of lower 2017 earnings becasue of an expected drop in power prices.
FT 15th Dec 2016 read more »
Daily Mail 15th Dec 2016 read more »