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Friday, June 14, 2024

France. EDF nationalized, French energy group delisted after nearly 18 years

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The French government has completed the acquisition of shares in the energy group Electricite de France (EDF). As a result, the company was delisted from the Paris Stock Exchange after nearly 18 years, Reuters reported. The nationalization cost nearly 10 billion euros.

Government France completed the acquisition of the missing 16 percent on Thursday. shares of the energy group EDF. The nationalization is intended to allow EDF to accelerate its program of building new plants and increase the number of nuclear reactors, said Bruno Le Maire, Minister of Economy and Finance. He stressed that the takeover of the group was a “government priority”.

Nationalization of the EDF

The decision to take over EDF by the state was made in July last year, and Prime Minister Elisabeth Borne announced then that her cabinet intended to nationalize the heavily indebted group to build an “ambitious future” in the energy sector.

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The government intends to entrust EDF with the task of building new nuclear reactors, but as pointed out by the AFP agency, the group’s room for financial maneuver is small due to its condition. EDF is in serious trouble and during the presentation of its 2022 results in mid-February, it turned out that the company’s debts amounted to 64.5 billion euros, because more than half of its 56 reactors were shut down for some time last year, either due to maintenance work, or due to corrosion.

The government intends to entrust EDF with the task of building new nuclear reactorsSpech/Shutterstock

Reuters pointed out that the energy company suffered a record loss last year, with nuclear power production plummeting to a 34-year low.

France, which usually exports energy in the summer, had to import it from 2022 SpainSwitzerland, German and Great Britain. Despite this, the government announced in March that the plan to finance the construction of new reactors will be known in outline “by the end of the year”.

AFP reported that the estimated cost of building six new EPR reactors is EUR 51 billion, and this is a sum that the EDF group will not be able to allocate on its own.

Main photo source: Spech/Shutterstock



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