The Government of France is reportedly weighing options to nationalise multinational electric utility company Electricite de France (EDF), reported Bloomberg.
Citing people familiar with this, the report said that the French Government is considering the option to reorganise the debt-laden business with a focus on nuclear energy production.
Go deeper with GlobalData
French officials have been carrying out talks with advisers on the option to acquire all the stake from EDF’s small stakeholders and delist the company from the stock exchange, people aware of the development said.
The French Government, which owns 84% of EDF, could retain the ownership of the company’s domestic business but review EDF’s overseas operations, the sources added.
If the idea to nationalise EDF is approved, then the move is expected to take place after the French Presidential election, which is slated to take place later this year.
EDF may also divest its overseas renewable assets, according to the sources.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe move would help EDF raise capital to finance some of its nuclear and hydroelectric assets in the country.
It may also attract foreign investors to make investments in its renewable projects in the country, the undisclosed sourced opined.
People familiar with the development said that the discussions are still at a very preliminary stage and there is no guarantee that the government could proceed with this option.
However, a spokesperson for the French finance ministry said that the information is ‘false’ and the government isn’t working on such a project.
Last month, French Government announced it will offer $2.4bn to support EDF, as the group sees a hit to profits due to outages at several of its nuclear plants and the impacts of a government power-price cap.
