The French government is considering buying out minority shareholders of Electricite de France SA, the first step in a corporate restructuring to address the challenge of replacing the country’s nuclear-power backbone, people familiar with the matter said. The government has asked EDF, of which it owns 84 percent, to propose changes in its structure. The utility’s cash flows are vulnerable to volatile power prices and intensifying competition, and it’s already struggling to fund billions of euros of investments to maintain or replace its aging reactors. EDF is likely to be be taken into full state ownership, with nuclear operations being placed in a parent company and other businesses such as renewables placed in units, said one person at the utility, who asked not to be identified because the deliberations are private. Nationalization could help the utility cope with the state’s plan to reduce France’s dependence on nuclear power by phasing out some reactors, while also giving it the means to participate in the development of renewable energy, said a person familiar with the government’s thinking.
Bloomberg 13th Feb 2019 read more »
