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To End Partnership, Areva Makes Offer for Siemens’ Stake in Joint Nuclear Venture

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Areva Group and Siemens confirmed Monday that they have moved a step closer to ending a soured joint venture that combined the companies’ resources in nuclear projects around the world.

Two years ago, Siemens indicated it would exercise a put option to sell the company’s minority stake in Areva NP, and the companies have agreed to a price of $2.34 billion for it. Areva will take full ownership of the company, buying the German firm’s 34 percent share.

While both companies adopted the price recommended recently by independent consultants, the sale is still subject to an ongoing arbitration case before the International Chamber of Commerce, according to Reuters. The proceedings also will determine whether Siemens broke a non-compete clause by exploring an alliance with Russia’s state nuclear company Rosatom.

In additional litigation before the European Commission, Siemens has asked to be relieved of the non-compete clause. If overturned, Siemens would not have to wait for eight years before developing its own nuclear systems.

The Areva NP joint venture, created in 2001, offers a range of services to commercial and research reactor owners, including engineering, maintenance, manufacturing and fueling, according to the company.


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