Competition body studying EDF-General Electric deal

The competition regulator has opened a probe into the proposed takeover of General Electric’s nuclear steam power division by state-owned power giant EDF.

The Competition and Markets Authority is giving interested parties until 14 April to comment on the prospective deal, following which it intends to formally launch an investigation into whether it would result in a ‘substantial lessening of competition.’  

EDF initially signed a memorandum of understanding with GE in February 2022 to acquire some of the American conglomerate’s nuclear power operations before the pair made a binding agreement on the matter nine months later.

Nuclear technology: According to General Electric, its steam turbines are installed in half of the world’s nuclear power plants, including every single one in France owned by EDF

GE’s steam power business provides technology and services, such as automation software and electricity-generating Arabelle steam turbines.

According to the group’s website, its steam turbines are installed in half of the world’s nuclear power plants, including those in France owned by EDF.

It is currently building the world’s two biggest nuclear steam turbines for the Hinkley Point C project, Britain’s first nuclear power station to be constructed in more than two decades.

EDF Energy is providing the majority of financing for the Somerset site, with the remainder being put forward by the China General Nuclear Power Group.

The firm’s takeover of GE Steam Power will also cover technology for future nuclear plants, including small modular reactors (SMRs) and European pressurised reactors.

Subject to regulatory approvals and other customary closing conditions, the deal is expected to be finalised sometime during the second half of this year.

In November, GE claimed the deal would ‘enable EDF Group to strengthen the technologies and skills… essential for the maintenance of the existing nuclear fleet and future projects’.

Nuclear power has grown in greater importance in recent years as countries have sought cheap, reliable and low-carbon forms of energy to cut emissions and reach net zero targets in line with the Paris Agreement.

Soaring oil and gas prices following Russia’s full-scale invasion of Ukraine have also increased the urgency to accelerate the move towards green energy.

Earlier this month, EDF Energy announced that it would keep the Heysham 1 and Hartlepool nuclear plants open for another two years, citing the need to boost the UK’s energy security and lower demand for imported gas.

Matt Sykes, the managing director of EDF’s Generation division, said: ‘Supplying zero-carbon and affordable electricity, whatever the weather, has never been more important than right now.

‘Our ongoing investment and careful stewardship of the UK nuclear fleet since 2009 has allowed us to make today’s decision and helps support the UK’s energy security at this challenging time.’

This post first appeared on Dailymail.co.uk