French National Assembly Adopts Text to Ban EDF Asset Sale

Ania Nussbaum
·1 min read
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(Bloomberg) -- The French National Assembly adopted a text to prevent “dismantling” Electricite de France SA, despite opposition from Emmanuel Macron’s government.

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The legislation was pushed by the left and obtained backing from conservatives and the far-right. It was approved by 127 votes while 89 opposed, but still needs to go through the Senate.

The move is a blow for Macron’s government, who has said it doesn’t plan to split EDF after its full nationalization. Still, opposition lawmakers fear Macron could revive a plan under which more profitable parts of the business would be partially sold off. The French president lost his absolute majority in the lower house during legislative elections last year.

The French government, which already owned 84% of EDF before the nationalization proposal, is taking the company into full state ownership.

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It has long been exploring ways to reorganize EDF. The company’s management previously developed a plan called “Hercules,” under which nuclear and hydropower assets would be delisted and become fully owned by the state, while as much as 30% of its renewables, power distribution and retail operations would be publicly listed. Hercules stalled in 2021 after more than a year of discussions.

The proposed legislation also extends regulated electricity tariffs to small and medium-sized companies.

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