EDF: The Autorité des Marchés Financiers considers the takeover provide to be compliant – 11/23/2022 at 8:39 am

(AOF) – The Financial Markets Authority on Tuesday gave the green light for the takeover of minority shareholders of EDF. The AMF ruled that the draft simplified takeover bid submitted by the government was compliant. This provides for the purchase of the remaining capital not held by the State, ie 16%, at a price of 12 euros per share. The cost of this operation is estimated at around 9.7 billion euros.


Important points

– World leader in low-carbon energy, founded in 1946 with 38.5 million customers worldwide and 117.3 GW installed capacity: 60% nuclear, 18% hydraulic, 8% renewable energy, 9% gas, 3% heating oil and 2% coal;

– €84.5 billion in sales and 117.3 GW installed capacity: 60% nuclear, 18% hydraulic, 8% renewable energy, 9% gas, 3% heating oil and 2% coal;

– “Cap 30” business model with 3 strategic axes: supporting customers on the path to carbon neutrality with 10 billion sales revenues from services, ranking as the world’s 1st producer of net carbon electricity and being a player in the energy transition;

– Capital 83.69% owned by the State, Jean-Bernard Lévy, CEO of the 18-member Board of Directors, is replaced by Luc Rémond;

– Balance sheet cleanup in April with net debt (rated A due to government guarantee) of €42.3 billion, bolstered by €3 billion divestiture plan between 2022 and 2024.


– 4 strategic plans: Electromobility – 30% market share in supplying electric vehicles by 2023 in France, Great Britain, Italy and Belgium, Storage – 10 GW installed worldwide by 2035 -, Solar energy – 30% of the market in France in 2035 – and the Excel plan for the French nuclear sector;

– Innovation strategy for digital transformation, production processes, electrical systems of the future and the decarbonization of customer uses:

– R&D budget of 661 million euros with 756 patented innovations,

– EDF Pulse Growth Fund and Incubator and Research Partnerships (Sinclair Lab, 5g Living Lab, Quantum Computing, etc.);

– Environmental strategy included in the purpose of the group:

– Become carbon neutral in 2050 and reduce emissions by 50% in 2030 compared to 2017,

– 99% of operating budgets for decarbonization and energy transition,

– €8.755 billion of “green and sustainable” financing and 72% of credit lines indexed on ESG indicators;

– Start of construction program for 6 EPR2 and studies for 8 others;

– Integrated operator, from design and manufacture of nuclear reactors through Framatome, which is 75% owned alongside Mitsubishi (19.5%), to distribution.


– Activities within the framework of the NOME law (free competition between all market players and resale of a quarter of EDF’s nuclear electricity production to its competitors) and electricity prices managed in France, hence a network of maintenance costs hardly included in the tariffs;

– Impact of the Russia-Ukraine conflict: the need to resume nuclear power generation, which requires investment in the French fleet and a cap on tariffs for private individuals;

– neutralizing the competitive advantage of nuclear energy by obliging it to sell electricity to industry at market price;

– Towards a renationalization of the group, but the price of the future delisting by the state, ie €12 per share, is contested by minority shareholders;

– After a net loss of €5.3 billion in the first half of the year, nuclear production is expected to reach an all-time low of over 280 TWh by 2022.

Threat to the European energy system

The leading importer of German gas, Uniper, accounts for 54% of the volumes it buys from Russia. After the war in Ukraine, the group had to procure the missing quantities on the spot market, where prices had exploded. When in trouble, he asked the German state for help, which worries all European energy companies. Nevertheless, the German RWE and the French Engie reacted by arguing that their situations were very different. RWE emphasized that it is less dependent on Russian gas. Engie benefits from the diversification of its sources of supply, with an increase in LNG volumes shipped in France and contracts with Norway and Algeria. The group has also adjusted its hedging strategy to strengthen its resilience.

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