French state-owned utility EDF’s new chief is considering a sale of some assets as part of a review of the firm’s portfolio in a bid to meet government demands to spur investments in new nuclear reactors, the Financial Times reported on Wednesday.
Dalkia and Edison are among the business units that may be sold, the FT reported, citing people familiar with the situation. Renewable assets, with the exception of EDF’s hydraulic power projects, are also being considered for sale, it added.
France is nuclear energy’s main champion in Europe as it gets around 70% of its energy from the source. EDF’s nuclear fleet produces about 70% of France’s electricity.
Bernard Fontana was nominated to be the next CEO of EDF in March, after President Emmanuel Macron’s government lost patience with former chief Luc Remont due to differences over how to provide power and build new capital-intensive nuclear reactors.
Fontana has told insiders that he wanted to assess which assets are not profitable or do not fit with the energy group’s strategic priorities, the FT reported, adding that the sale could come after the review, although he has not yet concluded which parts of the business should be sold off.
EDF did not immediately respond to a Reuters request for comment. Reuters could not immediately verify the report.
(Reporting by Rhea Rose Abraham in Bengaluru)
