(Update: specifies that EDF did not wish to comment on the information)
PARIS (Agefi-Dow Jones)–The energy company EDF wants to renegotiate the purchase price from the American industrial conglomerate General Electric (GE) of part of the nuclear activity of GE Steam Power, the newspaper Les Echos reported on Thursday on its website.
This desire to revise downwards the valuation of these assets, initially estimated at 1 billion euros, stems in particular from the risks that weigh on the order book for Arabelle turbines, two-thirds of which consist of orders from the Russian group Rosatom, following to the invasion of Ukraine by Russia, indicates the daily in an article citing several sources familiar with the matter.
Last month, the Fennovoima consortium canceled a contract with Rosatom to build a nuclear reactor in Finland, saying the war in Ukraine had “aggravated the risks for the project”. GE Steam Power was to supply an Arabelle turbine for this project.
“Other Rosatom contracts in Hungary or Egypt are at risk or may be delayed. This has consequences for the enterprise value,” a source close to EDF told Les Echos.
According to information from the daily, EDF has obtained a deadline to close the takeover operation, scheduled to be carried out in 2023.
Contacted by the Agefi-Dow Jones agency, EDF declined to comment on this information.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: VLV
Website: https://www.lesechos.fr//nucleaire-edf-general-electric-1410777
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June 02, 2022 08:08 ET (12:08 GMT)