Areva to sell T&D business; Indian arm on the block
04 Jul 2009
France's state-controlled nuclear company Areva SA plans to sell its entire transmission and distribution business. This effectively means that its Indian arm, Areva T&D India, is on the block, as an Areva spokeswoman has confirmed.
Areva's supervisory board approved plans to put T&D up for sale as part of a package of measures to help finance the group's investment needs. Areva T&D is estimated to be worth around 4 billion euros and has already attracted interest from French heavy engineering group Alstom and Germany's Siemens (SIEGn.DE: Quote, Profile, Research).
"The supervisory board of Areva has asked the group's executive board to put its global T&D division up for sale. This will involve special attention to the price offered and industrial and labour projects ... whatever be the outcome of this process, the Indian T&D arm's focus remains unchanged. We will keep you informed about the developments," C S Ashok Kumar, company secretary, said in a statement.
Depending on the interest generated, the decision to dispose of T&D or not and the choice of a potential buyer will be taken before the end of the year, Areva SA said. A world leader in the civil nuclear field, Areva wants to invest more in the nuclear market as well as to make further inroads into the renewable energies market while exiting T&D assets.
Areva T&D has five billion euros revenues, 31,000 employees and 72 facilities around the world. Areva T&D has more than 70 per cent stake in the listed Areva T&D India. The Indian company, which reported Rs 227 crore profits on a revenue base of Rs 2,655 crore in calendar year 2008, in late March inaugurated eight new factories.
Areva T&D India, is engaged in manufacturing equipment for the power T&D companies. Its contribution to the global turnover of the T&D business was 471 million euros (approximately 8 per cent) in 2008. Areva T&D global's turnover was 5,065 million euros for the year 2008.
