Start a new phase for Electricity de France SA (EDF), the largest energy producer and distributor in France and majority shareholder of Edison. The French government nationalized the company after the financial crisis that overwhelmed it. In fact, the 2022 budget closed with a record loss of 17,9 billion euros (in 2021 it had closed with a profit of 5,1 billion).
After 18 years of listing on the stock exchange, Paris has completed the delisting through the procedure “squeeze out”, whereby a minority shareholder (in this case 2%) is forced to sell his shares to a majority shareholder, at the original price of the takeover bid launched in July 2022 at 12 euros per share. On February 9, the State had reached the critical threshold of 90% by holding 96% of the corporate capital but thanks to this move it came to have exclusive ownership of EDF. L'16% buyback transaction of the share capital (The French state already held 84%) had a cvalue of 9,7 billion euro. EDF was wholly public capital company from November 2004 and from November 18, 2005 it had been listed on the stock exchange.
Ensure France's energy independence
The main goal of this nationalization is ensure France's energy independence. The choice of the Elysee has been termed a “necessary” public intervention to obtain greater energy independence and allow EDF to invest in the nuclear expansion plan desired by French President Emmanuel Macron. Thanks to complete control, the government will be able to support long-term investments in the energy sector and pursue the 2050 decarbonisation objectives, in particular nationalization will allow the construction of six EPR 2 technology reactors. In this way EDF will continue to play a critical role in the electricity supply of France, which currently derives about 70% of its energy production from nuclear sources.
New industrial plan expected at the end of June
“The takeover bid was a success. It was essential to allow EDF to implement several decisive projects in an accelerated manner: the increase in production of the existing nuclear park, in a context of growing electricity needs, and the construction program of six nuclear reactors with EPR2 technology between now and 2050 ′, for which a financial requirement of 50 billion euros is estimated,” said the French economy minister, Bruno Le Maire.
“As we approach a period with so many energy challenges, having a single shareholder allows for complete alignment on a long-term vision,” said EDF's new number one, Luc Remont announcing that a the new industrial plan will be presented at the end of June.
