France offers $10 bln to fully nationalize EDF

STORY: France is aiming to take full control of nuclear power company EDF.

It’s offered to pay 9.7 billion euros - or almost $10 billion.

EDF shares surged around 15% on the news.

They had been suspended for a week pending details of the government buyout plan.

The French state already owns 84% of EDF, which has been dogged by outages at it power stations.

It’s also facing delays and cost overruns in building new nuclear facilities.

Now Paris is taking action as Europe grapples with a continent-wide energy crisis.

Prices have soared amid dwindling supplies of Russian gas to Europe.

Ministers say taking control of EDF will increase the security of energy supplies for France.

Prime Minister Elisabeth Borne made the case to parliament earlier this month:

"We need to have complete control of our electricity production and its performance. We have to preserve our sovereignty in the face of the consequences of the Ukraine war and of colossal challenges to come.”

Analysts told Reuters the French offer looked attractive, and was likely to succeed.

However, bankers say the government will probably have to inject more money into the heavily indebted firm before long.

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