EDF have decided against increasing its stake in Constellation
Electricite de France (EDF), the French state-controlled electricity giant said it has decided against the move to increase its stake in U.S. power company Constellation Energy Inc. (CEG) as “the conditions are not met to do so." EDF said that it is keeping its options open in the U.S.
In a short statement, EDF, which is 84.8% owned by the French state, said it still intends to "play a major role" in the nuclear revival in the U.S. and to invest in the construction and operation of European pressurized nuclear reactors, known as EPRs.
Last week, EDF reported it had increased its stake in Constellation Energy to 9.51% and was considering raising this to 20%.
Constellation’s shares sank 19 per cent on Wednesday, as investors lost confidence in its ability to retain relationships with trading counterparties worried over its perceived lack of credit. Constellation has lost nearly 60 per cent of its market value this week.
EDF and Constellation Energy have a joint-venture agreement to build and operate nuclear power stations in the U.S. using EPR reactor technology designed by Areva (CEI.FR).