Reorganization of the capital of FRAMATOME
July 29, 1999
On July the 29th the French Ministers of Economics and Finance, of Defense and of Industry, have made public the main aspects of the new organization of the French nuclear industry. The Group's Board of Directors, meeting today, was informed that COGEMA and FRAMATOME, alongside CEA-Industrie and EDF, have agreed to start discussions in connection with the industrial project announced by the government and aimed to reinforce FRAMATOME's role.
COGEMA, with a 34% stake, will become FRAMATOME's reference industrial shareholder. This interest will materialize the conjunction of the nuclear professions exerted by the two groups. COGEMA's entry, with its contribution to FRAMATOME of its holdings in the Fuel subsidiaries (not including MOX fuel fabrication) will clarify the organization of this activity. By joining forces, COGEMA and FRAMATOME will be the world leader in nuclear services and power plants. CEA-Industrie's stake in the capital of FRAMATOME will be reduced to complete this operation.
The protocol signed 9 July between the CEOs of EDF, SIEMENS and FRAMATOME clarified the relations between Electricité de France, the operator and prime contractor for the construction of its nuclear power plants, and the industry players. In the context of sharper competition surrounding the players in the energy field, the clarification of the roles of the nuclear sector industries will help continue to enhance the effectiveness of France's industrial capability and will facilitate the formation and intensification of industrial partnerships and international alliances.
CEA-I, COGEMA and EDF also noted Alcatel's desire to shed its stake in FRAMATOME in less than two years. These shares will preferably be put on the market in accordance with FRAMATOME's wishes.