Areva to announce new contracts
Areva's transmission and distribution (T&D) division expects to announce many new contracts in the region starting next week, it told Emirates Business in an exclusive. However, the details of the division's sale to Alstom and Schneider for €4.09 billion (Dh18.56bn) and how it will affect the Gulf and Middle East remains unclear, according to a company spokesperson.
On January 20, the Alstom and Schneider Electric Group, through a consortium, were selected to enter into exclusive negotiations with Areva Group, an industrial conglomerate mainly known for nuclear power. The transaction meant that the transmission segment, representing two thirds of Areva T&D, will join Alstom Group and the distribution segment, representing one third, will join Schneider Electric Group.
The French government currently owns about 93 per cent of Areva through direct and indirect holdings. "The European Commission has already approved the proposed acquisition, but the closing of the transaction remains subject to the approvals of antitrust authorities and work councils in some remaining countries. Therefore, we don't know exactly when the closing date will occur and what will be the future organisation within Alstom and Schneider," said the spokesperson.
Meanwhile, the T&D business in the region continues to thrive, he added without specifying any values. "The business is ongoing and our customers reiterate their confidence in our people and solutions. Maybe, that is one of the reasons why we signed many contracts since the beginning of the year across the world… in addition to the business already accomplished in the Gulf and Middle East," the spokesperson said. "Many new contracts will be announced in the region, starting with at least two or three next weeks," he said.
In March, this newspaper learnt from Mazen Hamadallah, Regional Vice-President, Areva Near & Middle East Areva T&D (transmission and distribution) in the UAE, that it had started work on its Dh1 billion contract signed with Dewa, which involves the supply, installation, testing and commissioning of 11 gas-insulated substations (GIS) across Dubai, according to a senior official.
No details on Capital increase
The spokesperson from the Areva Group was not willing to elaborate on the capital increase at Areva Group. "Some strategic investors have expressed their interests to invest in Areva but that is now in the hands of the French State. We do not know when it can be expected," said the spokesperson. Qatar and Kuwait's sovereign funds were expected to participate in France's Areva's rights issue of €3 billion (Dh14.8bn), a senior company official told agencies last month. The issue was expected to be finalised by the end of April or beginning of May, Chief Executive Anne Lauvergeon had told reporters on a trip to Namibia. The French firm has plans to raise about €10bn by 2012 to fund its expansion and R&D into a new generation of nuclear power plants.