Toshiba, GE bid for French nuclear unit

November 10, 2009 01:10:23 PM

• A⁺ 
• A^-
• |
• 
• |
• 
• |
• 

Japanese high tech giant Toshiba and US conglomerate General Electric are bidding for a unit of Areva, the French nuclear power firm, Areva said Monday of a deal that according to press reports could be worth up to nearly 7.5 billion dollars.

A third offer for Areva's Transmission and Distribution unit is a joint bid by French engineering groups Alstom and Schneider Electric.

"Areva received today three offers from: Alstom-Schneider, General Electric, Toshiba/INCJ. Areva is now assessing these offers," the company said in a statement after the deadline for binding offers ran out on Monday.

State-controlled Areva, a world leader in nuclear power, announced in June that it was opening its capital to new investors and would sell assets to raise money for massive investments in new nuclear technology.

The Transmission and Distribution unit employs 31,000 people in more than 100 countries and accounts for nearly 40 percent of Areva sales.

The financial newspaper La Tribune said Toshiba, associated with the Japanese investment fund INCJ, had put forward the highest bid, nearly 5.0 billion euros (7.5 billion dollars), followed by 4.0 billion from General Electric and 3.5 billion from Alstom-Schneider.

According to another French publication, L'Usine Nouvelle, the French state is backing the bid by Alstom-Schneider and should announce its decision by the middle of November.

But the French offer has been criticised by Areva workers who fear it would lead to a dismantling of the unit, as Alstom and Schneider intend to operate different divisions within Transmission and Distribution.

In a recent letter to Areva executives, 41 Transmission and Distribution managers warned that a sale to Alstom and Schneider could mean a loss of market share, a sale of assets or a restructuring of certain plants.

But both companies have stressed that their bid would not have any "social consequences."

General Electric has said it would retain France as the global headquarters for all the operations of Transmission and Distribution.