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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.
Image and article originally from seekingalpha.com. Read the original article here.