The chief executive of French state-controlled utility EDF has defended the “industrial logic” of a full takeover of Areva’s nuclear reactor business, saying that an offer would be made within days.

In his first public comments on the issue, Jean-Bernard Lévy spoke out in favour of a more radical deal to save the state-controlled nuclear supplier, which reported a €4.8bn loss last year.

 

Areva has fallen victim to the sharp slump in global demand for new reactors that followed the 2011 Fukushima disaster in Japan. It is also grappling with fierce competition from US, Russian and South Korean companies. The group has not sold a new nuclear reactor since 2007.

Mr Lévy told French daily Le Figaro that an offer would be made for a complete takeover of Areva NP, the division that designs, manufactures and maintains nuclear reactors and also employs about 17,000 people worldwide.

“The more ambitious proposal from EDF will preserve the technical expertise of Areva’s reactor business and create the possibility of partnerships with outside groups from France or elsewhere,” he said.

He confirmed that a second, more limited offer, said to be preferred by the Areva management, would also be made to bring 1,200 Areva engineers who specialise in nuclear safety into EDF.

The state, which owns 87 per cent of Areva and 85 per cent of EDF, would be able to choose between the two.

“It is up to the state, which is the majority shareholder of EDF, and Areva to decide,” Mr Levy said.

He added that under the first, more dramatic, proposal EDF would also require guarantees to protect itself from risks such as Areva’s over-budget reactor project in Finland.

The Olkiluoto 3 reactor in Finland is behind many of Areva’s problems. It is due to come online in 2018 — nearly 10 years behind schedule. Areva has so far taken €3.9bn of impairment charges on the project.

EDF is due to build a new nuclear power station at Hinkley Point in southwest of England based on the same design as the Olkiluoto plant. Talks are continuing between EDF and potential partners on the project.

The French government has said repeatedly that it wants the “most efficient organisation” of the French nuclear industry and greater co-operation between EDF and Areva, and that it is examining the options.

Mr Levy is scheduled to speak to shareholders at an annual meeting in Paris on Tuesday. Over the coming years, EDF needs to focus on energy services, less centralised management and a more diversified energy mix, he said.