Alstom's (1022047.FR) Chief Executive Patrick Kron said Wednesday he is still keen on merging his company with nuclear giant Areva (CEI.FR).
"Both Alstom and Areva are separately able to propose to their shareholders an ambitious and autonomous strategy. But an Alstom-Areva tie-up would lead to an even more ambitious project", Kron said at a breakfast with journalists, adding that "I don't believe a group can make it in the nuclear industry with only a EUR10 billion (yearly) revenue."
"There are big crocodiles out there whose commercial strength is superior to ours," he said.
Kron also said that, contrary to statements from Areva Chairwoman Anne Lauvergeon, who has repeatedly expressed her opposition to a merger with Alstom, he doesn't see any negative synergies.
Kron said he hasn't heard anything new from the French government regarding Areva's future but he reiterated that Alstom wouldn't be interested in just taking a stake in the nuclear group. However he also said Alstom may be interested in Areva's transmission and distribution division if it were for sale.
"Developing ourselves in electricity transmission does not sound like a completely stupid idea for Alstom," he said.
The French state, which owns around 93% of Areva, has said it is reviewing financing options for the firm, but hasn't announced any decision yet.
Kron denied a recent press report that Alstom is considering an alliance with the U.K.'s Rolls-Royce Group PLC (RR.LN) in the absence of a deal with Areva.
"I haven't met Rolls-Royce CEO (Ian Robertson) in the past three years. He might have some ideas, I don't," Kron said.
Kron also denied a press report that the company is about to clinch a high-speed train deal in Poland.
The chief executive also said he welcomed the recent energy price hike, saying: "It's good news for Alstom as it encourages countries to look for stronger technologies," which the company can provide.
The energy price hike and the demand for cleaner energies should propel the development of a new generation of high-speed trains, he said.