FRENCH uranium group Areva SA has signed a joint venture deal with Chinese power equipment maker Guangdong Macro Co to make power transmission equipment in southern China.
Under the two-billion-yuan (US$262 million) deal, Areva's transmission and distribution unit, and Sunten Electric Co, controlled by Macro, will equally own the venture, Macro said in a filing to the Shenzhen Stock Exchange yesterday.
The venture needs approval from Marco's shareholders, Areva's board members and the Chinese government.
Macro said it could benefit from the venture, which will ease its capital shortage while Areva's advantages in brand, technology and market access would also help. Macro shares jumped by the daily maximum allowable 10 percent to 13.31 yuan yesterday.
Philippe Guillemot, chairman and chief executive officer of Areva's transmission and distribution unit, said it aims to win orders in China via strong organic growth and targeted acquisitions and partnerships by 2010.
China's power transmission and distribution market accounts for 24 percent of the world's total and is still growing strongly, said Areva, the world's largest maker of nuclear power reactors, in a separate statement.
Earlier this year, Areva won a US$5 billion deal from China to build two nuclear reactors in Guangdong Province.