In order to fully control the energy utility company EDF, the French government has stated its intention to buy out the company’s remaining stakes. The decision was made following the announcement of plans to nationalise the indebted corporation earlier in July 2022 by the French Prime Minister. The French finance ministry announced in a statement that it has made an offer to purchase the final 16 per cent stake in EDF for $9.85 billion in total or $12.26 for a share. Currently, 84 per cent of the business is owned by the government.
Once the agreement is finalised, the government will fully nationalise EDF and become the sole shareholder of the company. The action will also enable the state to move forward with a number of projects that President Borne mentioned in a speech in Belfort previously.
Reportedly, EDF is currently dealing with output declines, project delays, and government-imposed energy tariff limitations. The current war in Ukraine has made things even harder for the corporation. The nationalisation of EDF is anticipated to aid in securing energy supply. EDF stated in a separate statement that it has taken note of the offer and established an ad hoc committee to recommend the appointment of an independent expert in this regard.
REGlobal’s Views: The recent gas supply issues along with the lingering effect of pandemic-led disruptions has impacted operations of many energy utilities worldwide. EDF’s nationalisation is expected to help the company deal with its losses.
