Japanese conglomerate Mitsubishi Heavy Industries (MHI) confirmed that it is seeking to obtain a minority stake in nuclear power giant AREVA's reactor constrution business, which has been the focus of attention for investors since AREVA announced it would reorganize following losses of $5.6 billion in 2014.
AREVA is majority owned by the French state. In August, French utility giant Electricite de France (EDF), also majority owned by the state, negotiated a deal to buy 75 percent of AREVA's nuclear build division AREVA NP.
MHI has tie-ins to both AREVA and EDF. The Japanese industrial is contracted to build 15 replacement steam generators for EDF in a deal stuck in 2005. In 2007, MHI and AREVA announced the formation Atmea, a 50-50 joint venture to develop the mid-range 1,100MW ATMEA1 pressurized water reactor.
MHI President and Chief Executive Officer Shunichi Miyanaga said working with the French companies was familiar territory that has a proven track record. Investment in AREVA would “contribute to the improvement of the quality of nuclear power plants around the world,” he said.
AREVA has set a goal of completing its reorganization by 2017.