Following a report on the health of France's nuclear sector, President Nicolas Sarkozy's government called for closer coordination between the companies to offset recent losses of contracts to Asian rivals like Korea.
– Edited by April Murelio –
According to a report by France24.com, the French government said that EDF and Areva would sign a wide-ranging partnership to help France regain its leadership in nuclear energy.
The French government will study the possibility of EDF buying a stake in Areva, according to a statement released by Sarkozy's office. The government confirmed that Areva would sell about 15 percent of itself by the end of 2010, and said discussions with potential partners were underway.
Following a report on the health of France's nuclear sector, President Nicolas Sarkozy's government called for closer coordination between the companies to offset recent losses of contracts to Asian rivals like Korea. In December, a French consortium, including Areva, utility group GDF Suez and oil company Total, lost a $40 billion nuclear project in Abu Dhabi in December to Korea's KEPCO.
Francois Roussely, who ran EDF between 1998 and 2005, was asked by the French government to head the commission and to make proposals to fix the nuclear sector.
Areva, which is 90 percent owned by the state, wants to raise about 3 billion euros from new shareholders, which could include foreign companies. The proceeds would fuel international growth that could cost up to 10 billion euros from now until 2012.
In recent months, rumors have spread in markets and among France's policymakers and the media on whether the state would replace Lauvergeon in its bid to reorganize the nuclear sector.