Areva has agreed to sell a majority stake of its nuclear reactor business to EDF.

The company also plans a capital increase next year to fund its remaining uranium mining and fuel treatment operations.

75 per cent of the Areva NP unit is to be sold to EDF for EUR2bn ($2.2bn) to help meet EUR7bn in financing needs by 2017, it said in a statement on Thursday.
Philippe Knoche
It will also dispose of another EUR400m of assets, cut spending and improve cash management.

EDF, Areva NP, and their subsidiaries “will be completely immunized against any risks related to the Olkiluoto 3 project,” EDF said in a statement on Thursday.

Areva Chief Executive Officer Philippe Knoche said, “The agreements found with EDF represent very significant progress.”

The way is now clear for a bailout of Areva by the French government which already owns 87 per cent of the company along with 84 per cent of EDF.

[bc_video account_id=”” player_id=”” video_id=””]