Reports have surfaced that French utility EDF will not sell its British power grid.
The head of EDF, Henri Proglio, "has always been opposed to this project that was initiated by (former EDF CEO) Pierre Gadonneix," reports Wansquare.com, citing British banking sources. Proglio "is set to announce soon that he is ending it."
The offers EDF received were too low, the site said. EDF had planned to raise between $5 billion and $6 billion with the sale of its British grid.
The world's largest nuclear power company and 85 percent state-owned, EDF had planned to sell the British grid to reduce its massive debt of around $35 billion.
Proglio, the former head of water, energy and transport giant Veolia, succeeded Gadonneix at the helm of the world's largest nuclear company. Proglio was considered to be reluctant to leave Veolia, but it was reported that French President Nicolas Sarkozy repeatedly urged him to take the job.
EDF has already sold part of British Energy to reduce its debt. British Energy generates about a fifth of Britain's electricity, mainly with its eight nuclear power plants.
EDF runs 58 nuclear power plants in France that satisfy around 80 percent of the French electricity demand and is expected to lead Britain's nuclear energy revival. The utility has previously announced it would build four nuclear power plants in Britain, with each expected to cost between $7 billion and $8 billion. It also aims to build new reactors in the United States, China and Italy.
But to unlock further investment options, Proglio will have to oversee several asset sales over the next years to cut costs.
EDF's debt is in part due to a $20 billion purchase of British Energy and a $5 billion price tag for a 50 percent stake in U.S. nuclear company Constellation Energy.
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