EDF WILL INDEED BUY THE NUCLEAR

ACTIVITY OF GE (EX-ALSTOM)
fri 14 jan 2022 NUCLEAR ,
BRIEF

This January 13, 2022, Challenges reveals that an agreement would have been reached between
General Electric (GE) and EDF for a takeover by the French energy company of the nuclear sector of
the American group. The latter includes all of Alstom's former assets, including the Belfort site where
the Arabelle turbines are produced. The amount of the acquisition would reach 1.1 billion euros, but
its perimeter remains unknown.

EDF will finally buy GE's nuclear sector, including the

Belfort site and the Arabelle turbines
Since September 2021, EDF and GE have been in discussions for a takeover by the French energy
company of the former nuclear activities of Alstom , acquired in 2015 by the American group, which is
now seeking to sell them to redress a precarious economic situation, in order to focus on renewables.
Since the announcement of GE's intention to resell these assets, which notably include the Belfort site which
produces Arabelle turbines for French nuclear power plants (and its 1,400 employees), the French
government, which has a right of veto on such an operation, militates for a French solution, and urges EDF to
become a buyer. The energy company had already, in the same way, bought Framatome, after the sinking
of Areva.

But Jean-Bernard Levy, the CEO of EDF, had set a condition for the possible takeover of GE's nuclear
industry: that the French government place an order for new nuclear reactors . Since then, Emmanuel
Macron has confirmed that France will build new reactors, even if no official order has yet been recorded.

This January 13, 2022, the weekly Challenges announces that GE and EDF have reached an agreement for an
amount of 1.1 billion euros. The operation should be announced at the beginning of February, during a visit
of Larry Culp, CEO of GE, in France. However, the two groups have not yet finalized the scope of the
acquisition.

The crucial question of the scope of acquisition

It seems certain that Geast, the subsidiary of GE Steam Power which manages the former nuclear activities of
Alstom, in particular the construction of the Arabelle turbines, will pass into the bosom of EDF. But will
EDF buy out all of GE Steam Power, which brings together all of GE's turbine, electric generator and nuclear
equipment activities?

Will GE Steam Power France, which includes all the activities of the Belfort site, be fully included in the
transaction or not? This question is also the main concern of the unions and local elected officials at the
announcement of this takeover.
All are satisfied to leave GE, with which employees have been at open war for months, between layoffs and
multiplication of strike days . But the future of the Belfort site seems to them to depend on as complete a
takeover as possible.

"Buy a scope large enough, so that it is autonomous, that it can have remunerative services which can both
pay for the operation of the company and in addition all that is research and development ", thus claims to
EDF Christian Mougenot, CFDT delegate of GE Steam Power France.

Same story on the side of the mayor (LR) of Belfort Damien Meslot: “If there is just the production of
Arabelle steam turbines, it will be difficult to achieve profitability. If, on the other hand, there is the
integration, maintenance and commercial part, all of this will make it possible to achieve good
profitability. A non-profitable activity being condemned in the long term, we therefore want EDF to buy back
enough service for GE's nuclear activity to be profitable in the long term , ”defends the elected official.