Friday 31 July 2015

AREVA to sell majority nuclear reactor stake to EDF

EDF is to buy a majority share in a nuclear reactor business owned by French firm AREVA.

The energy company plans to buy between 51% and 75% of AREVA NP.

AREVA said it would sell at least 75% for €2 billion (£1.4bn).

AREVA expects the transaction to be completed in 2016 following regulatory approvals.

The companies have signed a memorandum of understanding, which includes plans to improve and develop their co-operation in areas including research and development, international sales of new reactors, the storage of spent fuel and dismantling.

They also plan to set up a company – 80% owned by EDF and 20% owned by AREVA NP – aimed at optimising the design and management of new reactor projects.

EDF Energy today announced a fall in UK profits in the first half of this year while British Gas reported a doubling of profits.