French utility GDF Suez SA (GSZ.FR) hasn't any interest in taking a stake in French State-controlled nuclear engineering group Areva SA (CEI.FR), chairman and chief executive, Gerard Mestrallet, said Wednesday.
Despite the company's modest presence, mainly in Belgium, in nuclear power generation, GDF Suez doesn't necessarily want to build nuclear plants, the executive said.
"We are electricity people; we are not power production equipment makers," Mestrallet told reporters, adding "therefore we are not interested in having a stake in Areva."
The French government holds about 90% of Areva and is considering selling around 15% of the company into private hands to raise capital to help fund Areva's development plans.
The state is in the midst of hiving off Areva's transmission and distribution business, which had accounted for up to 40% of the company's annual revenue. The around EUR4 billion of proceeds from that transaction will flow into the company's coffers to support its growth.
Mestrallet also said Wednesday he hopes to secure a deal to get a 9% stake in the planned Nordstream pipeline project before the end of the first quarter.
The pipeline should link Russia and E.U. countries via the Baltic Sea and GDF Suez is negotiating with Russia's state-controlled Gazprom OAO (GAZP.RS) to take a 9% stake in the Nord Stream pipeline project through the Baltic Sea to secure supplies of Russian natural gas.
Gazprom's German partners in the project -- the Ruhrgas subsidiary of E.ON AG (EOAN.XE) and BASF AG (BAS.XE) subsidiary Wintershall AG -- have agreed to cede part of their stake in Nord Stream, so the French company would have the same size stake as Dutch minor partner Nederlandse Gasunie NV, which owns 9%, Gazprom said.
Wintershall Holding and E.ON Ruhrgas currently hold 20% each, while the Russian gas monopoly has a 51% stake.
Mestrallet also said he expects the economic recovery in France and Europe to be "quite moderate" this year. He said "2010 won't be easy," adding that GDF Suez is "lucky to be established in some regions where [the recovery] is more sustained."
This year, GDF Suez will benefit from the contract it signed with the French government last month on public services. The agreement will be implemented from April 1. The deal will give the company a clearer picture over French regulated gas tariffs, Mestrallet said. The government also owns 35% of GDF Suez.
And Mestrallet declined to comment on a report in London's Daily Telegraph, which said the company is planning to raise its 35% stake in French environmental services group Suez Environnement SA (SEV.FR), which it spun off after the merger that created it between Suez SA and Gaz de France SA two years ago.