The future of struggling French nuclear build specialist Areva is still up in the air, but some of the players are jockeying for position, at least in the eyes of the media.
Jean-Bernard Levy, the head of state-owned French utility Electricite de France (EDF) said this week that his company, the largest nuclear plant operator in the world, which is 84.5 percent government-owned, would make a play for Areva’s nuclear division, which is said to be valued at around $3.3 billion.
By Friday, other possible bidders had been revealed. An unnamed employee of China National Nuclear Corp. confirmed Thursday that the Chinese company and China General Nuclear Power Group were intent on buying a stake in Areva, although it was not revealed how large a stake was under consideration. A third major player, Engie, formerly known as GDF Suez, was taking a different position. “If we consider something, it would be in co-operation with Areva, not simply an acquisition of some assets,” Engie Chief Executive Officer Gérard Mestrallet told The Financial Times.
On the other hand, “CNNC has been pushing toward cooperation with Areva in processing nuclear waste and developing safety-related control systems,” the CNNC employee said.
Areva is also owned, primarily, by the French government, which holds an 87 percent stake in the company. Areva, however, has posted four years of losses, including a loss of $5.35 billion in 2014, which has triggered widespread speculation that a large portion or all of the company could be sold.
CNNC and CGN’s intentions remain somewhat vague regarding assets they are considering. In addition, manufacturing giant Dongfang Electric Corporation, based in Chengdu in western China, is also considering a potential tie-in, likely in the form of a joint venture.
In 2014, Areva announced several business deals had been reached with CNNC. Areva had signed on to help develop a spent fuel treatment and recycling facility. Further deals were expected, Areva said last year.