EDF, the French state-controlled energy company, is contemplating selling stakes in its modular reactor subsidiary as well as other non-core assets to finance a significant investment in new nuclear power in France. This move comes as the French government prioritizes a new nuclear program, which includes plans to construct six new EPR2 reactors at an estimated cost of up to $100 billion.
Potential divestments include EDF's energy services subsidiary Dalkia, its Italian electricity provider Edison, and some renewable energy activities, excluding hydroelectricity. In 2024, Dalkia generated an EBITDA of $425 million, while Italy contributed $1.75 billion (4.8%) and non-hydro renewable activities outside France accounted for $2.34 billion (6.4%) to the group's overall EBITDA of $36.5 billion. Nuclear and hydraulic power generation in France alone produced $20.9 billion in EBITDA, with nuclear energy making up 78% of EDF's total electricity output.
EDF's CEO, Bernard Fontana, who recently replaced Luc Rémont, indicated in an April 30th hearing that "certain disposals could be undertaken because room for maneuver is needed for investments." This strategic shift aims to secure the necessary capital for the massive nuclear build-out. The company's net financial debt remained stable at $54.3 billion last year, following $22.4 billion in investments, a 17% increase from the previous year.
The potential sale of a minority stake in Edison has been under consideration for some time, with EDF working with Intesa Sanpaolo and Lazard since October. Sources had previously valued Edison at up to $10 billion. Despite regulatory uncertainties in Italy regarding an "energy bill decree," EDF is moving forward with plans for a stock market listing or sale of a stake in Edison. This regulation could impact investment and growth, particularly in renewables in Italy. Earlier, in 2018, EDF was also in discussions to sell half of its UK wind assets.
