Areva, one of the French companies at the heart of the controversial Hinkley Point C nuclear project, has unveiled plans to break itself up into three parts in a bid to stem huge losses. The 87% state-owned atomic engineering and uranium mining company is hoping to raise €9bn (£7bn) from the government and from selling off assets after running up losses of €2bn last year. Areva, a 10% equity participant in the £18bn planned new Hinkley scheme, is also using the split to isolate financial commitments to a hugely delayed project at Olkiluoto in Finland.
Guardian 15th June 2016 read more »
French nuclear group Areva said that the collapse of talks with Finnish counterpart TVO would not hinder its proposed state-backed bailout or the sale of its nuclear reactor division to utility EDF. Areva and TVO have been in negotiations to resolve multibillion-euro legal claims relating to cost overruns at the Olkiluoto 3 nuclear plant in Finland, but the talks collapsed two weeks ago. This raised fears that, without clarity on the future of the project, Areva would be unable to sell its Areva NP reactor division, valued at 2.5bn eros, to EDF. This sale is seen as a crucial part of a wider restructuring to save the company. On Wednesday, Philippe Knoche, Areva chief executive, said that the “door was open” to a deal with TVO but outlined “other options” to push ahead with the restructuring without a settlement. Mr Knoche said on Wednesday that the company had worked out a “Plan B” if the TVO talks do not restart. This would involve moving all the activities of the old Areva NP except the Finnish project into a new company that could then be bought by EDF. The risk for the Olkiluoto 3 project would then remain indirectly with the French state. The government rescue package will see the company raise 5bn euros in the markets. The EDF sale was also agreed in principle, radically shrinking the group. Mr Knoche outlined a strategy for the new Areva, which after selling its nuclear reactor business will focus on uranium mining, enrichment, recycling and nuclear decommissioning. The new company is provisionally being called NewCo.
FT 15th June 2016 read more »
France’s state-controlled nuclear energy company, announced its restructuring plans Wednesday, which will see it split into three smaller companies and raise about 8 billion euros (about $9 billion) in fresh capital. The company, which has made losses for the last five years, will also sell its noncore businesses to raise some of the cash.
IB Times 15th June 2016 read more »
The French state plans to keep two thirds of the capital of a new nuclear fuel company that will be split off from nuclear group Areva and will invite strategic investors to buy a one third stake, Areva said on Wednesday. As part of a restructuring under which 87 percent state-owned Areva will sell its nuclear reactor unit to state-owned utility EDF, Areva will hive off its uranium mining, nuclear fuel production and recycling, and decommissioning activities into a new company, provisionally named NewCo. Areva will complete the operation in the second half of 2016 and has started talks with its unions about the restructuring.
Reuters 15th June 2016 read more »
France’s Areva today presented plans for the sale of a majority stake of its reactor business to EDF and a restructuring through the creation of a new company focused on the nuclear fuel cycle. The process is expected to be completed next year.
World Nuclear News 15th June 2016 read more »