The European Commission approved the French state's plan to grant a capital injection of €4.5 billion to Areva in line with EU state aid rules, the EC announced on Tuesday.
The state aid will be given based on the realization of conditions including a positive conclusion to the ongoing tests by the French Nuclear Safety Agency concerning the nuclear reactor vessel of Flamanville III, and the approval of the divestment of Areva's reactor business under EU merger rules, according to the statement.
"Today's decision paves the way for a viable future for Areva based on a sustainable restructuring plan. The plan strikes the right balance between improving the group's competitiveness and limiting distortions of competition created by the public financing," Margrethe Vestager, EU commissioner responsible for competition policy, was quoted as saying.
In April 2016, France notified the Commission of a restructuring plan to restore Areva's competitiveness for assessment under EU state aid rules.
The French state is a majority shareholder in Areva holding 86.5 percent share interest.
The company focuses on nuclear fuel cycle activities and contributes to ensuring Europe's supply security of uranium.
The French authorities will submit regular monitoring reports to the Commission. These reports are to ensure the restructuring plan is implemented in full and in line with Tuesday's decision, until Areva's restructuring period is concluded in 2019.
By Huseyin Erdogan