Alstom, Schneider may jointly bid for Areva T&D biz

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New Delhi, July 24

Alstom SA and Schneider Electric announced on Thursday that they may launch a joint bid for the Transmission and Distribution business being sold by Areva, France's state-controlled nuclear power giant.

"Schneider Electric and Alstom envisage submitting a joint offer" for the T&D operations, the two companies said in a statement issued in Paris.

If successful in the bidding process, the two companies would break up the T&D unit, with the transmission operations going to Alstom and Schneider taking over the distribution business. They gave no details of the price they might offer for the Areva business. However, agency reports, quoted analysts as valuing Areva's global T&D operations at €3-5 billion ($4.2-6 billion).

According to the two companies, the joint offer will optimise the strategic, industrial and commercial strengths that they can bring to each of the two areas of T&D and maximise the value of the business. "This offer would consequently be more attractive for the vendor," they said.

Areva T&D India , the unit of Areva's global T&D business that is listed on Indian bourses, will also be part of the overall sale process being initiated by the French nuclear giant.

Areva, the world's largest nuclear firm, needs massive funds for investment, decommissioning of ageing plants, and for buying Siemens AG's share of a nuclear reactor joint venture. Selling the T&D unit will help Areva focus on all stages of nuclear energy production, from uranium mining to enrichment and waste disposal.

Taken from Business Line

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