EDF/Areva (New NP Subsidiary) Transaction

Compass Lexecon provided economic support to EDF in the context of EDF’s proposed takeover of New NP, a 100% subsidiary of Areva NV which houses Areva Group’s nuclear reactors business. We evaluated the potential for vertical foreclosure of the transaction in the market for nuclear fuel as Areva is one of the two main nuclear fuel suppliers to EDF. The European Commission found that despite the vertical relationships between the two companies, the merged entity was unlikely to engage in foreclosure strategies, either because it did not have the incentive or the ability to do so. It approved the transaction in May 2017 after a Phase I investigation without any need for remedies. Our work was pivotal in that respect, especially with regard to the merged entity’s ability to foreclosure, as the investigation was likely to either result in heavy remedies or in a Phase II investigation. The Compass Lexecon team consisting of Fabien Roques, Xavier Boutin, and Guillaume Duquesne worked with the EDF team led by Philippe Alquié, a team from Freshfields Bruckhaus Deringer LLP led by Jérôme Philippe and a team from Bredin Prat led by Guillaume Fabre.