VLNSF - Velan drops on report France trying to block sale of its nuclear business

2023-08-02 12:10:43 ET

Velan (TSX: TSX: VLN:CA ) fell 11% on a report that France is considering ways to block the company from selling its nuclear business as part of its sale to Flowserve ( NYSE: FLS ).

France is looking at Velan's business in the country and may try to block the purchase or set restrictions, according to a Bloomberg report , which cited people familiar with the matter.

Segault SAS, a French nuclear-submarine parts supplier, has been carved out of the Velan deal, and a fund is lined up to purchase the business in the coming weeks, according to the report.

Flowserve ( FLS ) and Velan didn’t return requests for comment to Bloomberg. The French finance ministry declined to comment.

Velan also plunged 13% on Tuesday before Flowserve ( FLS ) and Velan (TSX: VLN:CA ) agreed to extend the termination date for Velan's planned sale  until Sept. 7. The outside date was extended an additional 30 days until Sept. 7 given that regulatory approvals have not all been obtained.

The C$13 a share Velan deal was originally expected to close in Q2 when it was announced in February, but it has been delayed.

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