The French government has approved the merger of nuclear reactor activities of nuclear energy groups EDF and Areva, reshaping the national nuclear industry. Under the preliminary agreements, EDF will become a majority shareholder in Areva; both companies are controlled by the French state (84.5% in EDF and 87% in Areva), which will inject new capital "as much as necessary". Final details will be negotiated by the two companies within a month.
In 2014, Areva announced a €4.8bn loss, following a decline in global demand for new nuclear power projects in the wake of the Fukushima disaster in 2011. The company, which is facing a fierce competition, has not sold a new nuclear reactor since 2007 and has accumulated delays (and related financial provisions) on the Olkiluoto-3 EPR project project (9-year behind schedule so far). The company has announced a €1bn cost-cutting programme including the axing of up to 6,000 jobs.