EU probes French state rescue of nuclear firm Areva

Brussels (AFP) – EU anti-trust regulators opened an investigation into the restructuring of the French state-owned nuclear reactor builder Areva, the European Commission said on Tuesday.

The probe will “determine whether the French state’s contribution to the financing of the Areva group’s restructuring gave the company an unfair advantage not available to its competitors within the meaning of the EU rules on state aid,” a statement said.

Areva, which is 87-percent owned by the French state, has faced severe difficulties since 2011, when the Fukushima disaster in Japan called nuclear power generation into question across the world.

Areva’s woes were compounded by construction problems affecting its first EPR reactor in Finland — now expected to open nine years late in 2018 — putting company finances deep into the red.

In April, Paris notified the EU Commission of a massive restructuring plan to save the national champion that included a 4.0-billion-euro ($4.4-billion) injection from the public coffers.

The plan also included a proposal to divest major units of the company, including Areva’s reactor unit to French energy giant EDF and Japan’s Mitsubishi Heavy Industries.

“Given the size and importance of the restructuring of Areva, the Commission has to carefully assess that the restructuring plan is sound and that the state aid does not unduly distort competition in the Single Market,” said EU Competition Commissioner Margrethe Vestager in a statement.

“Our aim is to ensure a sustainable future for Areva without the need for further government support,” she added.

EDF, also majority-owned by the French state, agreed in June 2015 to purchase between 51 and 75 percent of Areva NP at a valuation of around 2.7 billion euros ($2.99 billion), with the deal expected to be finalised in 2017.

France sees nuclear energy as a key national industry and the government has been closely involved in talks to restructure the sector.

The French state has already poured in billions to keep Areva afloat and thousands of French workers on the payroll.

Areva is also involved in the mining of uranium, primarily in Niger, and its processing into nuclear fuel.