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Market Chatter: LNG Disruptions Prompt EDF to Postpone Edison Stake Sale Plans to 2027

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French utility EDF delayed plans to sell a stake in its Italian unit, Edison, to 2027 as Middle East LNG disruptions weighed on the subsidiary's valuation, Reuters reported Wednesday, citing two sources familiar with the matter.

To raise cash for investments in its nuclear reactor fleet, EDF had reviewed several options for Edison last year, including an initial public offering and a sale of a minority stake to investors.

Disruptions to Middle East gas shipments, combined with regulatory changes in Italy, weakened Edison's operating outlook as the country's second-largest natural gas importer, the sources reportedly said.

"At this stage, we are still assessing all the available options, notably in light of the various recent developments, and are closely monitoring market conditions," EDF toldin an emailed response.

Advisers are revising Edison's business projections to reflect LNG supply disruptions, while EDF could resume investor talks in September if regional tensions no longer weigh on the company's valuation, Reuters reported, citing sources.

In April, the companies reportedly pushed a decision on the potential sale to this month. Last year, sources reportedly told Reuters that Edison could be valued at 7 billion euros ($8 billion) to 10 billion euros.

QatarEnergy, which supplies Italy with 6.4 billion cubic meters of gas annually under a long-term Edison contract, canceled five additional LNG cargoes and extended force majeure through mid-August.

Edison didn't immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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