After four years of consecutive losses, including a $5.4 billion loss in 2014, talks of re-organizing or selling parts or all of French nuclear giant Areva are stirring back and forth headlines this week.
In the latest turns, Arva Chief Executive Officer Phiippe Knoche told union representatives Wednesday that various options, include sale of the company, was in discussion at high levels. On Friday, a joint statement from six significant union groups stated that the unions opposed sale of the company, which is 87 percent owned by the French government.
The unions specifically noted their belief that sale of Areva's nuclear reactor business would gut the company, which derived 40 percent of its 2014 revenue from the nuclear reactor business, according to The Wall Street Journal.
“Areva would be left without its core business, it wouldn’t be able to make reactors or even design them. Additionally, the company provides equipment and services to some EDF’s competitors; how would that be possible after a sale?” said CFDT union representative Jean-Pierre Bachmann.
The sale talks invariable include the possibility of French utility Electricite de France taking over some or all of Areva. EDF is also majority owned by the French government.
Even without a major sale, Areva has said that it is working on plans to trim losses by cutting operational costs and cutting back on capital expenditures. Job cuts appear likely, as well.
Areva says that construction delays at the Olkiluoto nuclear power plant in Finland, contributed to its losses.