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The French government is mulling a sale of its stake in Peugeot parent company PSA Group, to help fund a €3 billion (£2.28 billion) aid package for energy giant EDF – which is responsible for building the Hinkley Point C nuclear power plant, according to a report in the Financial Times.
The French state needs to raise the money after promising last month that it would provide three-quarters of the €4 billion that EDF has requested in a capital raising.
Sources told the newspaper that the shareholding in the carmaker could be sold in full or in part, as part of a wider review of the government’s corporate holdings.
Sales of the airports in Nice and Lyon have already been announced to help raise money for the French nuclear industry, and two people close to the talks reportedly said the government is hoping to raise between €1.5 billion and €1.8 billion from the two.
Chief executive of EDF’s UK arm, Vincent de Rivaz, told the Energy and Climate Change Committee this week that Hinkley Point C is “ready” and “the money is there”, but EDF is consulting with unions before it makes a final investment decision.
De Rivaz was called back in front of the committee after saying at a previous meeting it would be “very reasonable” to expect a final investment decision to be made by mid-May. He said it would hinge on the French government agreeing to provide further financial support for the company.
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