France has announced a takeover bid to take full control of the country’s largest utility company, EDF.
The government has made a 9.7 billion euro ($9.9 billion) offer to nationalize electricity supplier EDF, the country’s economy and finance ministry said on Tuesday. The State already owns 84% of the company’s shares. The government plans to submit the offer to the Financial Markets Authority in early September and expects to complete the acquisition by the end of October, Euronews reported, citing the ministry.
The state will offer 12 euros per share, a 53% premium over closing value the day before the government first announced nationalization plans. France wants to take full control of the debt-laden EDF to protect households from soaring energy bills while investing in renewable energy and nuclear power, in line with a broader EU policy to reduce dependence on imported fossil fuels. According to reports, EDF’s debt could exceed €60bn by the end of the year, and in general, the rising cost of oil and gas has forced European power and utility companies to rack up debt to keep up.