Contract signed for Areva reactor business sale

Areva and EDF yesterday signed a contract for the sale of Areva NP’s reactor business. EDF will take exclusive control of the new entity, referred to as ‘New NP’ and valued at €2.5 billion ($2.7 billion).

EDF agreed in July 2015 to take a stake of at least 51% in Areva’s reactor unit in a government-backed plan to revitalise France’s nuclear power industry. Yesterday’s contract follows a memorandum of understanding signed by the two companies in July.

New NP will combine the Areva Group’s activities relating to the design and manufacture of nuclear reactor equipment and nuclear fuel, and services to the nuclear installed base. Contracts for the Olkiluoto 3 EPR project in Finland and for resources required to complete that project, and some contracts relating to components forged in the Le Creusot plant, are not included in the sale. Those contracts will remain within Areva NP.

Contractual obligations related to the discovery of anomalies in quality inspections of equipment manufactured at the Le Creusot plant, and possibly also at the Saint-Marcel and Jeumont plants, will remain guaranteed by Areva SA, the companies said.

The sale price for 100% of the equity in New NP has been confirmed as €2.5 billion.

Courtesy of WNN