Nightmare trading day for Edf in Paris. The energy giant controlled by the French state is losing 18% of its value, touching the lowest level since last November 2 at 10,15 euros and realizing the worst performance of the European index Stoxx 600.
To cause the collapse of the shares are some rumors reported by French TV bfm Business according to which the timing for the expected agreement between the government in Paris and the European Union on the French nuclear reform risk being extended by several months, jeopardizing the parallel restructuring process of Électricité de France, thanks to which the company would be able to improve its investment and financing capacity.
BFM reports that Brussels has asked the French government to extend the negotiations for another six months, a period of time that would not allow the transalpine parliament to approve the reform by the end of the year.
As mentioned, the green light for nuclear reform is essential for progress Edf's reorganization plan, known as "Project Hercules" which provides for the division of the company into three divisions: Edf Blu which would manage the nuclear power plants, Edf Azur which would deal with the hydroelectric sector and Edf Verde, listed on the stock exchange, which would deal with the distribution of electricity and renewables. The landing on the Stock Exchange of the division active in renewables, among other things, was harshly criticized by the unions who consider it a first step towards the dismantling and privatization of the company.
We recall that a few weeks ago, the Minister of Economy Bruno Le Maire had not mince words when describing the situation of the energy giant: “Today Edf runs into a wall if we are not able to give it the means to invest,” said the minister, adding that the “company's debt level is not sustainable”.
