French state-owned utility company Electricite de France’s (EDF) restructuring talks with the European Commission are not stuck and are on track, according to CEO Jean-Bernard Levy. The French government that currently holds 83.7% of EDF, plans to place EDF’s nuclear business in a holding company that would be fully state-owned, which would see it hold more profitable parts of its business while freeing it of its liabilities, as per Reuters. The utility company plans to start operating its next-gen nuclear reactor at Flamanville next year. Reuters reports EDF and the EC have been in continuous talks to create a structure where all of EDF’s businesses would benefit from a form of state aid even as unions oppose the plan, called “Project Hercules”. Under the restructuring, investors would be invited to acquire up to 30% of the shares in the new entity.
EDF’s bonds were flat – its USD 5.25% Perp was at 105.4, yielding 2.2%.
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