France has announced that it will bid to take over the country’s largest energy provider – EDF. Ministry of Economy and Finance said on Tuesday that the state has offered $9.9 billion to nationalize electricity provider EDF.
The government plans to file the offer with the Financial Markets Authority by early September and hopes to complete the takeover at the end of October, Euronews reported, citing the ministry.
The government will offer $12.24 a share, a premium of 53% on the closing value the day before the government first announced the nationalization plans.
France wants to take over the debt laden EDF to ensure households are protected from soaring electricity bills. In a bid to reduce dependence on imported fossil fuels, France will invest in renewable energy and nuclear power. This policy is in line with a wider European Union policy.
Reports state that EDF’s debt could exceed €60 billion by year end. The rising cost of oil and gas has been forcing European energy and utilities companies to accumulate debt to survive.
