Mitsubishi to nuy into Areva?

September 24, 2015

Mitsubishi Heavy in talks on investment in Areva reactor unit

http://www.japantimes.co.jp/news/2015/09/24/business/corporate-business/mitsubishi-heavy-talks-investment-areva-reactor-unit/#.VgQIyZfkNME

JIJI, Kyodo

Mitsubishi Heavy Industries Ltd. said Thursday it is in talks about taking an equity stake in Areva NP, a reactor unit of French nuclear giant Areva SA.

The heavy machinery maker is discussing the deal with Areva SA and Electricite de France, a French power utility known as EDF, which is deciding whether to support financially struggling Areva NP.

Mitsubishi Heavy said in a statement it is in talks over the possibility of investing in the Areva subsidiary.

“No decision has been made so far,” it said.

Areva SA has been reeling from a slump in the nuclear power industry since the Fukushima disaster began in 2011. For the business year ended in December 2014, the company logged a net loss of around €4.8 billion (¥645 billion).

EDF has agreed to buy between 51 percent and 75 percent of Areva NP.

Mitsubishi Heavy and Areva SA are in an alliance to develop and sell a new pressurized water reactor called Atmea. Areva SA apparently sought investment from Mitsubishi Heavy as a measure to help rebuild its slumping business.

EDF has already agreed on a framework to give support to Areva SA by acquiring an equity stake of up to 75 percent in Areva NP. The remainder will be held by Areva SA.

As the stake to be taken by EDF is supposed to be at least 51 percent, the utility is expected to seek additional investment from other companies, including Mitsubishi Heavy and a Chinese firm, to lower its holdings.