22 October 2009 - Areva T&D is to acquire Megatran, the Canadian-based power transformer manufacturer.

The acquisition of Megatran, located in Saint-Jean-de-Richelieu, Québec Province, will extend AREVA T&D's power transformer industrial footprint to North America, increasing value for both utilities and industrial customers.

In turn, Megatran's production capacity is expected to increase by 50 per cent leading to the creation of new manufacturing and engineering jobs.

The acquisition, together with this agreement, will help Areva T&D become the number one player in Canada for power transformers up to 100 MVA.

Peter Huber, Megatran's President said, "Megatran's mission has always been to provide high quality, reliable power transformers under competitive commercial terms while remaining flexible to our customer's particular requirements.

"By joining Areva T&D, we will capitalize on its broad international commercial expertise and together improve our power transformers' performance, which will step-up production volumes. This is clearly an exciting opportunity for the local Québec economy."

Nathalie Normandeau, Québec's Deputy Premier, Minister of Natural Resources and Wildlife, and Minister responsible for the Northern Plan, said: "Consolidating AREVA's presence is good news for Québec because it secures a large portion of Hydro-Québec TransÉnergie's supply of power transformers rated under 100 MVA. Over the next five years, Hydro-Québec TransÉnergie plans to place orders worth over C$100m to equip its transmission grid."

Following the integration of the company, Megatran will become a new manufacturing unit within Areva T&D's global Power Transformers Product Line. Megatran's President, Peter Huber will remain a member of the new unit's senior management team.

The completion of the transaction is expected by early November.