Macron's deal with China discussed by Alex Phillips
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The French Government has agreed to buy the state backed energy company EDF at about 12€ (£10.2) per share, as the country is set to buy out the remaining 16 percent of EDF that’s not already state-owned. For Mr Macron, this has put the total cost of nationalisation of the debt ridden energy firm at €9.7billion (£8.2billion).
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According to the French finance ministry, this deal would represent a premium of 53 percent to closing price of July 5, before the government announced the planned nationalisation, adding that the overall value of buyout offer totalled 9.7 billion euros (£8.2billion).
The French government is set to buy out major shareholders including Blackrock, Thornburg Investment Management and Vanguard, and purchase €2.4billion of convertible bonds.
Earlier this month, France’s Prime Minister Elisabeth Borne announced that Paris would increase its ownership of the company from 84 percent to 100 would give allow them to restructure the debt-laden energy company, while dealing with a major energy crisis.
EDF, which owns nuclear power plants in both France and the UK, is one of Europe’s biggest utilities and is a critical aspect of Mr Macron’s energy strategy, as France relies on nuclear power for 70 percent of its electricity.
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