Carole Ferry, edited by Laura Laplaud 6:33 a.m., July 7, 2022, modified at 6:35 a.m., July 7, 2022

During her general policy statement on Wednesday before the deputies, Prime Minister Élisabeth Borne confirmed the State's intention to hold 100% of the capital of EDF.

But several questions arise: what will be the cost of this renationalisation and what will be the consequences on the French electricity market?

“I confirm to you today the intention of the State to hold 100% of the capital of EDF”, declared Prime Minister Élisabeth Borne during her general policy statement on Wednesday before the deputies.

The State therefore wishes to regain full control of the French energy company, it is today a shareholder with nearly 85%.

For this, it is necessary to buy back the shares of the minority shareholders.

Total independence

The cost should be around five billion euros, plus probably a small redemption bonus which remains to be defined.

Why does this renationalization seem necessary?

First of all, because today EDF is very indebted: at 60 billion euros, further dug by the ceiling on electricity prices.

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A situation that does not at all reassure lenders who tend to accept loans at very high rates.

This increase in capital can therefore be a guarantee of confidence which will make it possible to obtain more advantageous rates for investing, for example in the future nuclear reactors promised by Emmanuel Macron.

Moreover, having total control over the management of the group also makes it possible to avoid having to render accounts to the minority shareholders, who can, for example, demand guarantees on the profitability of the projects implemented.

This allows total independence. 

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It remains to obtain the green light from the European Commission, which could demand that the capital of certain entities of the group be opened again to private investors.

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