PLANS for rescuing France’s ailing nuclear engineer, Areva, became a little clearer this week when the new boss of Electricité de France (EDF), Jean-Bernard Lévy, described on May 19th the role that the utility was prepared to play. Mr Lévy made the case for an “ambitious” takeover by EDF of Areva’s nuclear-reactor business, leaving Areva with uranium mining, fuel treatment and decommissioning. The price would have to be right. The government, which owns around 85% of both companies, is expected to make a final decision early next month.
Ministers are anxious to restore to health an industry in which French firms have hitherto led the world, and on which their economy depends. Nuclear power generates around three-quarters of France’s electricity, more than in any other country. Resolution cannot come too soon for Areva. It has not sold a new reactor since 2007 or paid a dividend since 2009. In 2014, on revenues of €8.3 billion ($9.2 billion) it lost €4.8 billion. A new management team is trying to cut €1 billion from costs by 2017 and strengthen Areva’s balance-sheet. But the problems...
from The Economist: Business http://ift.tt/1R6H2kM
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