Tech and Web NEWS

General Electric wants to invest in French nuclear reactor group Areva power transmission and distribution

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 1, 2009

General Electric (GE.N) pledged long-term investment at French nuclear reactor group Areva’s (CEPFi.PA) power transmission and distribution (T&D) unit after being chosen as a possible buyer. The world’s largest maker of jet engines and electricity turbines, which is bidding with investment fund CVC, said it wanted to create a “champion” that would be a leader in technology with operations worldwide, Reuters reported.

GE said it wants to create a Paris-based world leader in technology that holds operations worldwide.

Areva selected three potential buyers for its T&D division, which could be worth as much as between $7.3 billion.

The two other offers came from Japan’s Toshiba and French companies Alstom and Schneider Electric.

Bids will be assessed in the sale process’ second phase, which ends in early November, after which Areva hopes to have one or more binding offers. Areva, which is owned almost entirely (91 percent) by the French government, plans to sell the unit as part of a $16 billion financing plan that also includes a capital increase.

Japan’s Toshiba Corp. (6502.TO) is the other company in the trio of potential buyers in the second phase of the bidding process, according to people familiar with the situation.

Toshiba declined to comment when asked Wednesday.

Meanwhile, a spokeswoman for CVC Capital Partners Thursday declined to comment beyond the information in GE’s statement.

June 30, state-controlled Areva announced plans to raise funds for investment in nuclear and renewable power by selling its transmission and distribution unit and by opening up its capital to strategic and industrial partners in a capital increase.

Phase two of the bidding process for Areva T&D is set to run until early November, when one or more binding offers would be submitted, T&D head Philippe Guillemot told staff in a memo, sent out after the bidding deadline closed late Sept. 18, and seen by Dow Jones Newswires.

Like this article! ‹ BofA settlement frees former Merrill Lynch chief Robert McCann for UBS Apollo Group in student-recruiting lawsuit Settlement Talks ›
Share this Post: Get It Delivered To Your Inbox