According to a source close to the file, EDF will disburse about 200 million dollars (175 million euros) for this transaction, once taken into account the liquidity and debts of the redeemed activity.
The announcement was expected for several days. Thursday, February 10, Electricity of France (EDF) and General Electric (GE) announced in a Common communique The redemption project by the French electricity company of a part of the nuclear activity of GE Steam Power.
This announcement coincides with the visit of President Emmanuel Macron to Belfort, on the very site of manufacture of the Arabel turbines equipping the French nuclear power plants, sold in 2015 to the American General Electric when he was Minister of the Economy. This choice to sell to GE The Alstom Energy branch has been regularly charged, including the announcement of the elimination of more than a thousand jobs per GE in 2019.
175 million euros
According to a close source of the file, EDF will disburse approximately $ 200 million (175 million euros) for this transaction, once taken into account the liquidity and debts of the redeemed activity. The activity that will be acquired by EDF is valued at $ 1.2 billion (€ 1 billion), due to significant cash.
The proposed operation focuses on “GE Steam Power’s conventional island equipment for new nuclear power plants, including the world’s most powerful turbines – as well as maintenance and upgrades of nuclear power plants existing “, detail the two groups.
These steam turbines are a strategic asset for the nuclear sector. GE claims half of the world market against competitors like Mitsubishi or Siemens. In particular, they will be able to equip the EPR and EPR2 technology reactors as well as the SMALL modular reactor), is it specified in the press release.
The EPRs, which will be at the heart of the ads of Emmanuel Macron in Belfort Thursday, however, multiplied the setbacks. At the beginning of January, EDF again announced a delay in the construction of the first French EPR, that of Flamanville, launched in 2006. This EPR, supposed to be connected to the network in 2012, was to cost 3.3 billion euros. It should finally start in the second quarter of 2023, with eleven years behind the initial calendar and cost, according to EDF, 12.4 billion euros. The Court of Auditors, she believes that the total bill would rather be 19.1 billion euros.
70% of the activity in France
Nuclear activities and teams involved in the proposed transaction are located at “nearly 70% in France, particularly on industrial sites such as Belfort and Courneuve”, and concern about fifteen countries in total.
This project of acquisition “will allow EDF to further strengthen its control of the technologies and key skills for the operating park and for the projects of new nuclear reactors in France and beyond”, commented on the President- Managing Director of EDF Jean-Bernard Lévy, cited in the press release.
GE side, the group would continue to provide its services “for more than 100 GW of nuclear turbine islands on its US market” and keep Ge-Hitachi Nuclear Energy, “a leading provider in the field of the cycle of life of reactors, which will deploy the first commercial SMR, connected to the network, in Canada. “
“Nuclear energy also has an important role to play in the energy transition and GE will continue to support this industry,” said President and Chief Executive Officer, Larry Culp, also cited.