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Wed 17 Nov 2010 11:47 AM

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Qatar puts conditions on investing in France's Areva

QIA will only invest in Areva's nuclear activity if it can later invest it in its uranium mining business

Qatar puts conditions on investing in France's Areva
Qatar economy

Qatar's
sovereign wealth fund said it will only invest in French nuclear group Areva's capital
increase if it can convert that investment into its mining division, possibly
delaying negotiations.

The
Qatar Investment Authority, along with French utility EDF and Japanese group
Mitsubishi Heavy Industries, is in talks to invest £1.5-3bn ($2.0-4.1bn) in
Areva to help it fund international expansion.

The
QIA has told the French government, which is piloting talks on the investment,
it will only invest in Areva's nuclear activity if it can later invest it in
its uranium mining business, French daily Les Echos reported.

"They
want to invest in the parent company only if they have the assurances of the
state to convert some or all of their participation into the mining
division," said a source close to the negotiations.

Till
now the QIA was considered the most solid potential investor in Areva,
according to the paper, and was seen taking up to a 10 percent stake.

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