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EU opens probe into Areva rescue package
EU opens probe into Areva rescue package
Review to ensure nuclear group does not need ‘further government support’
JULY 19, 2016 by: Alex Barker in Brussels and Anne-Sylvaine Chassany in Paris
Brussels has opened a full probe into France’s state-backed rescue package for Areva, raising the possibility of stricter restructuring conditions being attached to public support for the nuclear reactor maker.
...
While Ms Vestager cast the investigation as a routine decision, such full-scale probes are typically launched when there are serious doubts over the legality of the aid or the adequacy of the restructuring conditions. There is no deadline to complete such probes.
...
Once the pride of France, the largest reactor designer has been negotiating a government-backed rescue package that will see it raise as much as €5bn in cash. The company is also selling a majority stake in its reactor-making division Areva NP, valued at €2.5bn, to rival French nuclear group EDF.
In December, Areva’s credit rating was downgraded by Standard & Poor’s to B plus — four notches below investment grade. In February, it reported a €2bn net loss for 2015 after taking further writedowns on its long-delayed reactor project in Finland as well as impairments related to restructuring and weak market conditions.
...
Review to ensure nuclear group does not need ‘further government support’
JULY 19, 2016 by: Alex Barker in Brussels and Anne-Sylvaine Chassany in Paris
Brussels has opened a full probe into France’s state-backed rescue package for Areva, raising the possibility of stricter restructuring conditions being attached to public support for the nuclear reactor maker.
...
While Ms Vestager cast the investigation as a routine decision, such full-scale probes are typically launched when there are serious doubts over the legality of the aid or the adequacy of the restructuring conditions. There is no deadline to complete such probes.
...
Once the pride of France, the largest reactor designer has been negotiating a government-backed rescue package that will see it raise as much as €5bn in cash. The company is also selling a majority stake in its reactor-making division Areva NP, valued at €2.5bn, to rival French nuclear group EDF.
In December, Areva’s credit rating was downgraded by Standard & Poor’s to B plus — four notches below investment grade. In February, it reported a €2bn net loss for 2015 after taking further writedowns on its long-delayed reactor project in Finland as well as impairments related to restructuring and weak market conditions.
...
https://next.ft.com/content/8d650906-4dcd-11e6-88c5-db83e98a590a
Their project in Finland is 10 years behind schedule and $5.5 billion over budget in as nuclear business friendly environment as is possible.
They have another project in France that is similarly screwed up.
