AREVA Case Solution

This Case is about COSTS, FINANCIAL MARKETS

PUBLICATION DATE: May 13, 2009 PRODUCT #: 109092-HCB-ENG

Areva, the world’s market pioneer in the civilian nuclear power, was placed to take advantage of the revival of nuclear power. Nevertheless, three problems clouded the favorable prognosis: (1) 1.7 billion euro loss on the building of the first next generation nuclear reactor in Finland, (2) the selection of German firm Siemens to pull out of its partnership in Areva NP and exercise its 2.1 billion euro put option, and (3) the proposed investment budget shortfall of 3 billion euros in 2008. Can Areva greatest create cash to fund its investments for 2008 and beyond?

AREVA Case Solution
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