Areva’s T&D unit has bidders lining up

France's state-controlled nuclear group Areva's (CEPFi.PA) transmission and distribution unit has an eager line of candidates ready to snatch it up, according to Thomson Reuters. But the company won’t take less than €3.5 billion ($4.9 billion).

Bidders so far include Alstom and Schneider Electric, which are planning a joint bid, as well as at least four other companies. Areva said earlier this month it plans to sell the unit by the end of the year, with offers being submitted as soon as September.

Areva’s T&D unit helps to efficiently bring electricity from its source onto the power network. It builds high- and medium-voltage substations and develops technologies to manage power grids worldwide. The company also said the unit helps to connect carbon dioxide-free power generation and renewable energy sources to the grid.

According to Reuters, General Electric could team up with investment funds U.S.-based Apollo and Europe's CVC Capital Partners, which are still discussing the details of an offer for the T&D unit.

Other potential bidders include investment funds France's AXA Private Equity and Britain's Charterhouse, which would be looking for an industrial partner. Indian conglomerate Avantha Power & Infrastructure, which operates in energy transmission, and Chinese sovereign wealth fund China Investment could also be interested, Reuters said.

Areva is also active in the biomass sector. Last year, Areva received a €33 million contract to build a biomass power plant, fueled by sugarcane bagasse, in Brazil (see Areva to build biomass plant in Brazil). Areva also acquired a 70 percent stake in Brazilian biomass group Koblitz last year (see Areva grabs Brazilian biomass co.).

Areva and Charlotte, N.C.'s Duke Energy are jointly developing biomass power plants in the United States (Areva, Duke in biomass joint venture).

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