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Rolls-Royce in talks with French energy supplier for its civil nuclear business: Sky News
Posted on Wednesday, 21 August 2019 10:41
Luxury car manufacturer Rolls-Royce has entered into advanced discussions with a consortium controlled by French energy group EDF for a majority stake in its civil nuclear operations, city sources told Sky News.

The UK-headquartered business is said to be close to sealing a deal with Framatome, as the investor group is known, that could be worth around GBP 100.00 million and would involve handing over control of a company that supplies more than half the world’s nuclear reactors.

In addition, the insiders observed that Rolls-Royce is pursuing dual track talks to sell the rest of its international civil nuclear operations to a US-based private equity firm.

This unit is focused on providing data analytics tools to power stations, Sky News noted.

People close to the matter also spoke with the Financial Times suggesting the sales are part of Rolls-Royce’s plans to reshape its operations and comes after the group said it hired KPMG to pursue a disposal of the entire division in March.

Analysts told the newspaper that the international civil nuclear unit could be worth GBP 200.00 million.

The sector is a small part of Rolls-Royce’s total operations and does not include the bulk of the company’s work in the UK, such as its labour at the Hinkley Point in Somerset, which is expected to be built by 2025 for GBP 20.30 billion.

Shares in the group closed up 19.2 at GPB 7.88 at yesterday, giving the firm a market capitalisation of GBP 15.16 billion.

Both reports come after US-based infrastructure group Jacobs agreed to acquire the nuclear business of John Wood for an undisclosed amount.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 83 deals targeting nuclear electric power generators announced worldwide in 2019 to date.

It is worth noting that a large number of these transactions involved minority stakes in Exelon and Entergy; however, the largest by far and away was Atomnyi Energopromyshlennyi Kompleks announcing a capital increase from Gosudarstvennaya Korporatsiya po Atomnoi Energii Rosatom worth RUB 500.00 billion (USD 7.49 billion).

© Zephus Ltd