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France's EDF to rescue Areva

France's EDF to rescue Areva
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French nuclear giants Areva and EDF will merge their reactor businesses in a joint venture controlled by EDF – in a wide-ranging reshuffle of the country’s state-owned atomic energy industry.

EDF is said to be putting in around 2 billion euros – and the French government, which controls over 80 percent of both companies, will also inject new capital into Areva as part of the deal.

French Economy Minister Emmanuel Macron told reporters that there will be “no redundancies.”

The deal marks a major reversal of fortunes for Areva, which for years fought off attempts to tie it up with EDF.

Last year Areva lost nearly 5 billion euros after taking a huge hit on new reactor projects.

CGT trade unionist CGT Anne-Marie Cailletaud said: “Areva needed a bail-out solution because of strategic mistakes made by the company’s management.”

Cailletaud continued: “The losses are mainly due to (delays related to) the OL3 reactor in Finland and the purchase of UraMin (Canadian mining company and mine in Namibia) that was totally overpriced.”