EDF: A nationalization is looming, the title jumps

 EDF jumped to the Paris Stock Exchange on Thursday on press reports that the return to 100% of the French electrician in the hands of the State is among the priority projects of the new government.

The title, green lantern of the SBF 120 index, takes more than 5% to 8.5 euros at 0755 GMT.

According to the economic newspaper Les Echos, the nationalization of EDF is among the priorities of the new government after the legislative elections, alongside inflation and pension reform.

“The article gives more color to the potential timetable for nationalization with a project that will begin to be discussed after the legislative elections and not during or before, suggesting an ambition to proceed reasonably quickly, but not a sense of urgency. “, writes JP Morgan analysts in a note.

According to them, a meeting scheduled for June 30 between the managing director of EDF and the unions, also mentioned by Les Echos, fuels the feeling that the group seems more and more ready to consider nationalization.

Contacted by Reuters, EDF said it would not comment on the subject.

EDF, 83.9% owned by the French state, is faced with the difficulties of its nuclear fleet and has repeatedly downgraded its outlook for nuclear production in France for 2022.

The group is also penalized by the government’s decision to force it to sell more nuclear production to its competitors to limit the rise in energy prices.