French power utility Électricité de France (EDF) has confirmed it is considering asset disposals as part of a €5bn ($5.43bn) cost-saving plan over five years. Potential operations include opening up the capital of its Italian subsidiary Edison and partially or fully selling its renewables platform in the United States.
This strategy comes amid a comprehensive review of its asset portfolio. EDF stated that no final decisions had yet been made but acknowledged that a strategic review was underway. The group, fully renationalised in 2023, is facing a debt burden of €54.3bn ($59.03bn) at the end of 2024, a level deemed concerning by several public institutions.
Targeted operations to reduce debt
Economic daily Les Échos reported a so-called “adaptation plan” based on asset sales that could raise up to €17bn ($18.49bn). This figure has not been officially confirmed by the utility. Discussions also involve seeking partners for the activities of EDF Power Solutions in the United States.
This potential capital opening follows statements by Chairman and Chief Executive Officer Bernard Fontana, who upon taking office, highlighted the need to “prioritise investments”. In an internal message, he noted that capital openings in selected markets or activities were under consideration to restore the group’s financial flexibility.
Ongoing labour tensions
EDF’s cost-saving plan is causing concern internally, particularly over the share affecting operating expenses. According to central union representative for CFE-CGC, Amélie Henri, nearly one-third of the targeted savings could impact payroll. She reported a deterioration in labour relations, exacerbated by the approach of the new management.
In its September report, France’s Cour des comptes warned about the uncertainty surrounding EDF’s long-term financing capacity. The group is facing an investment programme valued at €460bn ($500.07bn) between 2025 and 2040, mainly for nuclear development and low-carbon energy projects.
Strategic decisions pending under time pressure
The timeline for potential divestments remains unclear, as annual wage negotiations are still ongoing. If discussions over Edison and the US assets materialise, EDF could reallocate capital toward segments identified as strategic in the medium term. No official schedule has been released for the expected decisions.
