EDF has agreed to a significant investment in troubled nuclear reactor maker Areva, fuelling fears of a knock on negative impact on the company’s commitment to financial investment in Hinkley Point C nuclear power plant in southwest England.
On Wednesday night the board, under pressure from the French government approved taking a controlling stake in Areva NP, valuing the reactor unit at about €2.5bn.
Analysts are questioning whether the move will prove too much of a financial burden on the company who are also struggling to come up with the funds to take a majority stake in the à‚£18bn British project.
EDF is set to take a 66.5 per cent stake in Hinkley, with CGN, a Chinese company, holding the remainder.
Jean-Bernard Levy, EDF’s chief executive, said last weekend in an interview with Journal du Dimanche that the final investment decision on Hinkley was close, adding that the company might sell part of its stake in the project once construction was “well under way”.
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