The deal was greenlighted under the EU’s merger regulation after the Commission concluded that it was “unlikely to cause competition issues”.
According to plan, EDF will acquire between 51 and 75 per cent of New NP, Areva’s business focusing on the design and supply of nuclear reactors, equipment, fuel assemblies, control systems and services.
Areva has confirmed New NP’s worth at around €2.5bn ($2.8bn).
As both EDF and Areva are involved in building the UK’s Hinkley Point C nuclear power plant, analysts have speculated that the the merger could potentially aid in avoiding the delays and cost overruns plaguing other projects such as Finland’s Olkiluoto 3, which is currently nine years behind schedule and €5bn over budget, and France’s Flamanville, now six years late and €7bn over budget.
Under the deal with EDF, Areva will retain control of the Olkiluoto 3 project.