European Commission Opens State-Aid Investigation Into Areva Restructuring

21 Jul (NucNet): The European Commission has opened an investigation to determine whether the French state’s contribution to the financing of Areva’s restructuring gave the company an unfair advantage over its competitors, the EC said in a statement. Areva said last month that the French government – the majority shareholder in Areva – would inject more than €4bn ($4.4bn) into Areva and a new entity called New Areva, in a restructuring plan that will also see Areva NP, the subsidiary that produces nuclear reactors, sold to nuclear operator EDF. “Given the size and importance of the restructuring of Areva, the Commission has to carefully assess that the restructuring plan is sound and that the state aid does not unduly distort competition in the Single Market. Our aim is to ensure a sustainable future for Areva without the need for further government support,” Margrethe Vestager, the commissioner responsible for competition policy, said in the EU statement. The EC said France had notified it in April of a restructuring plan to restore the Areva group’s competitiveness and improve its financial position. The EC said in the statement it would check whether the assumptions of Areva's restructuring plan are sufficiently realistic to restore the long-term viability of the company without any additional future cash infusion.