The French utility EDF has confirmed the signature of binding agreements with Mitsubishi Heavy Industries (MHI) and Assystem regarding the acquisition of an equity share in NEW NP, the former Areva NP (the reactor business unit). MHI's share is expected to be between 15% and 19.5% while Assystem will take 5% of NEW NP. The transaction price has been set at €2.5bn for a 100% equity stake, excluding adjustments and earn-out provisions.
In November 2016, Areva and EDF inked a contract setting the terms of the sale of an interest conferring exclusive control by EDF of the NEW NP entity (a 100% subsidiary of Areva NP), that will combine Areva Group’s activities relating to design and equipment manufacturing of nuclear reactors. Under the deal with Areva, EDF bought a maximum of 75% of NEW NP on the basis of a valuation of €2.5bn for 100% of the capital, with the possibility of bringing partners into the capital of the company and thus go down to 51% of the capital. At the moment, only MHI and Assystem have been included in the deal. The finalization of the entry of EDF and its partners into the capital of New NP is due to take place at the end of 2017.
While discussions to bring in the Chinese group CGN have not yet succeeded, EDF specifies that it remains "open to the entry of other strategic partners", without specifying which ones.
The electricity operator is also discussing with Areva concerning the full exit of the New NP capital group by the end of its restructuring plan, scheduled for 2019, in order to comply with the requirements of the European Commission.