EDF Shares Drop on Report of Stalled Negotiations for Restructuring
By Giulia Petroni
Electricite de France SA’s shares dropped on Monday following media reports that an agreement between the French government and the European Union on France’s nuclear reform and restructuring of the utility company won’t be reached any time soon.
At 1023 GMT, shares trade down 15% down at EUR10.55.
According to French business news channel BFM Business, Brussels asked the French government to continue discussions for six more months, a timeframe that might not allow the reform to be voted on in parliament by the end of the year.
Talks between France and the EU include a reform of the Arenh price mechanism — under which energy suppliers secure nuclear power from EDF at fixed prices– that would increase the price of electricity resold by the state-owned utility to its competitors.
The reform would also lead to a reorganization of EDF –the so-called “Project Hercules” –around three divisions, splitting its nuclear and renewable energy activities.
The project has been harshly criticized by EDF’s trade unions, who fear it would lead to job cuts and a dismantling of the company.
Write to Giulia Petroni at [email protected]
(END) Dow Jones Newswires
January 25, 2021 06:06 ET (11:06 GMT)
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Dow Jones – EDF Shares Drop on Report of Stalled Negotiations for Restructuring