Rolls-Royce to offload nuclear instrument unit to France's Framatome

Rolls-Royce has agreed to sell its French civil nuclear business to EDF-controlled Framatome, the blue chip engineer announced on Monday.

Financial details of the sale have not been disclosed. However, chief executive Warren East said: "The transaction marks a further simplification of our business and contributes towards our target to generate over £2bn from disposals."

Rolls-Royce was already looking to sell the French civil nuclear business in March. But the pandemic has hit Rolls-Royce hard, as it is paid by most airline customers in line with hours flown. In October, it announced plans to shore up finances by raising a total of £5bn, including around £2bn from a discounted rights issue.

Along with the French nuclear business, its Spain-based ITP Aero unit has also been earmarked for sale.

Bernard Fontana, chief executive of nuclear energy specialist Framatome - which is 75% owned by French utility EDF - said the acquisition "aligns with our strategy to ensure the continuity of a strong skill base and to expand our footprint for long-term operations".

The instrumentation and controls specialist employs 550 people and in 2019 reported revenues of €94m. Its operations are primarily in France although it also has a presence in China.