It is a sea snake that has been returning for more than five years. But this time, EDF seems willing to sell its two nuggets: the Italian Edison and the energy services specialist Dalkia. According to several sources, the public company has begun strategic talks about its two subsidiaries.
First of all, the Italian gas company Edison, owned by EDF for more than 20 years. At the moment no decision has been made. According to our information, the general director of EDF, Bernard Fontana, is in favor of the sale of control of Edison.
But CEO Marc Benayoun, who is primarily Edison’s president, wants EDF to retain control, explains a source close to the matter. According to Reuters, an IPO of the Italian gas company in Milan would be a compromise solution, in which EDF would only give up a third of the capital.
“The logic is that Edison is sold in several stages,” explains a good expert on the subject. Because the business is expensive. It generates 1.7 billion euros of operating profit and is worth, according to financial sources, more than 10 billion euros. Neither the Stock Market nor an industrialist could buy it all back. Unless a consortium of investors applies.
The role of the Italian government
EDF will decide next year. At the moment, no formal contact has been established between the French group and the Italian government. “But we will have to anticipate and be careful,” acknowledges a source close to the matter. The Italian State has the right of intervention and veto, “golden power”, in strategic sectors such as banking, defense or energy.
For two years now, the idea has been circulating that Italy wants to recover its gas champion, which EDF bought in two stages, in 2002 and then in 2011.
For its part, the French State, a 100% shareholder in EDF, is pressuring the public company to sell assets since its nationalization in 2022, to finance the construction of its future new EPR reactors. “If there are transfers, we will have to make sure that the State does not want to take everything from us, not even the dividends,” replies a person close to EDF.
Straighten Dalkia before selling
The electrician is also studying the sale of its subsidiary Dalkia, which operates in energy services, heating and air conditioning networks. Also in this case, this operation has circulated many times through the corridors of EDF for several years. The new CEO, Bernard Fontana, is willing to consider it on a longer timetable, within two years, in any case not before the 2027 presidential elections.
Dalkia is a sensitive topic. The company has a turnover of 6 billion euros, especially among local administrations, and employs 22,000 people in France. EDF is willing to give up control, but would like to retain a minority stake to avoid controversy among elected officials. As EDF is 100% owned by the State, the sale of Dalkia would be considered a privatization and would require authorization from the participation and transfer commission of the Ministry of Economy.
Before selling Dalkia, the CEO of EDF wants to clean up its accounts, while its turnover has fallen by 6% in 2024. He trusts its CEO, Claude Laruelle. He has worked for 20 years at Veolia, a former Dalkia shareholder, and knows the company well. Its objective is to obtain from its rival Engie the mega contract worth 15 billion euros for district heating in the city of Paris, which ends in 2026.
According to our information, Dalkia generated €450 million in margins last year and would therefore be worth €7 billion. EDF gives itself two years before considering a sale and does not rule out changing the direction of its subsidiary. The group wants to rationalize Dalkia according to the model of its competitor Equans, the former Engie subsidiary bought by Bouygues in 2022. When contacted, EDF management did not want to comment on our information.
Its sale is already making many industrial groups salivate. Vinci, Eiffage, Veolia and even Suez, whose new boss, Xavier Girre, is the former CFO of EDF, are regularly cited. Investment funds will also inevitably be willing to up the ante.
Source: BFM TV
