French team holds talks over buying Areva

03 December 2009

Schneider Electric and Alstom plan to purchase power transmission and distribution business

France’s Areva has decided to enter into exclusive negotiations with a French team of Schneider Electric and Alstom for the acquisition of its power transmission and distribution business, Areva T&D.

The team proposed to buy the division for an equity value of €2.29bn ($3.5bn). Areva T&D’s net debt on 30 June 2009 was €1.05bn.

Japan’s Toshiba and the US’ GE had also submitted bids for the company.

Schneider will take over Areva’s distribution business, taking approximately one-third of the company’s equity value and acquired debt. The company will set up a new energy business unit. It forecasts this will generate about €4.6bn of sales with 80 factories and 22,000 employees worldwide.

Alstom will take over Areva’s transmission work, which accounts for two-thirds of the company.

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