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On February 14th, Chinese Foreign Minister Wang Yi, speaking at the Munich Security Conference in Germany, addressed China-US relations, pointing out two possible scenarios. One is that the US objectively and rationally understands China, pursues a positive and pragmatic policy towards China, and works with China to continuously expand common interests, leading to future cooperation between the two countries. This would undoubtedly be of great benefit to both China and the US, as well as the world. The other scenario is that the US decouples from China, opposes anything related to China, forms various cliques and groups targeting China, and even incites or plots Taiwan independence and the division of China, crossing Chinas red lines. This would lead to confrontation between China and the US. History progresses through twists and turns, and the future of China-US relations is bright. The vision and principles of mutual respect, peaceful coexistence, and win-win cooperation will ultimately be realized, because this is the only correct choice.French Foreign Minister Barro: Some G7 members have indicated their willingness to move forward with the ban on shipping services for Russian oil.NATO Secretary General Rutte: Russias oil revenues have fallen by a third, rapidly depleting its sovereign wealth fund.On February 14th, in response to recent online complaints about "tickets available for long-distance journeys but not for short-distance journeys," a representative from the 12306 Railway Technology Center advised passengers with short-distance travel needs to avoid purchasing tickets for sections of long-distance trains. If a section of a long-distance train is indeed necessary, passengers should submit a waitlist order when "no tickets available" is displayed, and utilize up to 60 combinations of "date + train number" for ticket purchase.On February 14, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, delivered a speech and answered questions at the 62nd Munich Security Conference. When discussing China-EU relations, Wang Yi stated that China and the EU are partners, not adversaries. He quoted Confuciuss famous saying, "A gentleman seeks harmony but not uniformity," expressing his hope that both China and the EU would act and follow the path of gentlemanly conduct. Wang Yi said that China and the EU should join hands to practice multilateralism, uphold the authority of the United Nations, oppose unilateral bullying, and resist bloc confrontation.

France will invest $10 billion to acquire full control of EDF

Haiden Holmes

Jul 20, 2022 11:02

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As Europe faces an energy crisis, the French government is ready to spend 9.7 billion euros ($9.85 billion) to purchase full control of EDF (EPA:EDF) in a takeover deal that would give it unlimited control over Europe's largest nuclear power operator.


The finance ministry announced in a statement released on Tuesday that the government will pay minority shareholders of EDF 12 euros per share, a 53 percent premium over the stock's closing price on July 5, the day before the government announced its intention to nationalize the entire debt-ridden company.


Tuesday at 08:36 GMT, EDF shares, which resumed trading after a one-week suspension awaiting details on the government takeover plan, were up 15% to 11.80 euros.


EDF has been plagued with unplanned outages at its nuclear fleet, delays and cost overruns in building new reactors, and power pricing regulations imposed by the government to prevent people's electricity costs from soaring.


The conflict in Ukraine has compounded the group's predicament, forcing it to acquire electricity from the market at historically high prices and sell it at a discount to its competitors.


France has declared that nationalizing EDF will increase the security of its energy supplies at a time when Europe is rushing to find alternatives to Russian gas supply.


Rising costs have placed pressure on energy providers across Europe, and Germany intervened earlier this month to save Uniper, the continent's largest buyer of Russian gas.


France, which typically exports electricity at this time of year, is now importing from Spain, Switzerland, Germany, and the United Kingdom, and the supply constraint is projected to worsen this winter.


"Nationalization is the only viable alternative to save the company and ensure electricity generation," said Ingo Speich, head of sustainability and corporate governance at Deka Investment, which owns a small stake in EDF. This is a necessary yet uncomfortable step.


With S&P predicting that EDF's debt will exceed 100 billion euros this year, a bondholder in the group viewed the proposed takeover as a welcome demonstration of government support.


However, the bondholder underlined that a great deal more must be done to stabilize the balance sheet.


According to a banker familiar with the issue, the state, which financed the majority of a 3 billion euro capital raise for EDF in the spring, would likely be required to inject further cash in the near future.


In 2005, EDF was listed for 33 euros per share on the Paris stock exchange; hence, investors who acquired shares at that time have suffered a large loss.


Analysts noted, however, that the government only needs 90 percent ownership of EDF in order to delist it.


Citi analyst Piotr Dzieciolowski stated in a note, "The offer seems enticing and has a good chance of success."


The buyout proposal will be presented to the stock market regulator by early September. The French government plans to complete the delisting process by the end of October, according to a source from the finance ministry.


After accounting for existing debts and a premium for minority shareholders, sources told Reuters last week that the government will pay close to 10 billion euros to purchase the remaining 16 percent of EDF that it does not already own.

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