Belgium, (Brussels Morning Newspaper) The French government has offered roughly 9.7 billion euro to take full control of EDF power utility.
The move will allow the government to run one of the largest power utilities in Europe as it sees fit, which will help it to contend with the energy crisis, according to Reuters reporting on Tuesday.
The French Ministry of the Economy, Finance and the Recovery pointed out in a statement released on Tuesday that the offered price presents more than a 50-percent premium on share price from 5 July, one day before the government announced plans to take over the EDF fully.
EDF shares jumped roughly 15% on Tuesday following a week of suspended trade and stood at 11.7 euro per share.
The French state currently holds about 84% of EDF, which has been facing issues including temporary closure of nuclear reactors, delayed construction of new ones and limitations on price of electricity imposed with the aim of protecting French consumers from negative effects of rising energy prices.
The government pointed out that the takeover will help it to increase energy security at a time when EU member states are grappling with the energy crisis and looking for ways to wean themselves off Russian energy imports.
Similar problems across EU
Power utilities across the bloc are in a difficult position due to soaring energy prices, with Germany bailing out its energy company Uniper earlier this month.
According to the French Ministry of Economy, Finance and the Recovery, the offer will be filed by early September. A source from the Ministry noted that the EDF is to be delisted by end October.
The source added that the government will not need EC approval for the planned nationalisation of EDF.
Gabriel Attal, Minister of Public Action and Accounts, pointed out on Tuesday that full nationalisation will allow the government to “invest massively in nuclear [energy].”
France is traditionally an exporter of electricity in the summer months, but is now importing from Germany, Spain, Switzerland and the UK, with the energy crunch likely to worsen in the winter.
Analysts noted that the government needs 90-percent ownership of the EDF to delist the company.
