French utility GDF Suez (GSZ.FR) and French state-controlled nuclear group Areva (CEI.FR) have been discussing for months over a strategic partnership, the two companies said Tuesday.
"There have been discussions over several months with a view to a long term strategic partnership," a spokeswoman for Areva said. "We do confirm that the two companies have been discussing for months over a very long term partnership," a spokesman for GDF Suez also said.
Both declined to elaborate over the planned finalization of the deal. The two companies have been partners for a long time, teaming up on several industrial projects.
"They are simply looking to secure this partnership," a person familiar with the matter told Dow Jones Newswires, and the partnership would not involve any financial considerations.
The partnership would see the companies co-operate in technology development, another person familiar with the matter said, citing areas such as desalinization services offered by GDF Suez, which require a certain amount of power.
Areva is 93% state-owned while the French state owns around 35% in GDF Suez.
According to French business daily les Echos Tuesday, a protocol agreement between Areva and GDF Suez on nuclear cooperation has been put off for now. The delay comes in view of a dispute between Areva and nuclear power utility EDF (EDF.FR) over spent nuclear fuel reprocessing, the newspaper reported.