APE sees no EU ruling on EDF's takeover of Areva NP reactor unit before 2017

(This October 26 story corrects to make clear EU ruling will be on EDF takeover of Areva, not the entire rescue package) PARIS (Reuters) - The European Union competition authorities are not expected to rule on French utility EDF's planned takeover of French nuclear company Areva's reactor unit before summer of 2017, the head of French state holding agency APE said on Wednesday. APE chief Martin Vial said on French news channel BFM Business that the Commission's review of EDF's project to acquire Areva reactor unit Areva NP would take several months. "I doubt that we will have an answer before the summer or autumn of 2017," Vial said. In a separate investigation, the European Commission is also expected to rule in late November or early December on a planned 5 billion euro (£4.49 billion) capital increase for Areva in which the state would contribute 4 billion euros. EDF had agreed last year to buy a majority stake in Areva NP and had said it was open to foreign investors to acquire minority stakes. APE is the state holding company through which France owns 87 percent of Areva and 85 percent of EDF. Vial said that as part of a nuclear industry refinancing package, EDF would also go ahead with a 4 billion euro capital increase of which the state would subscribe for 3 billion euros. Areva, whose new "NewCo" unit will focus on uranium mining and nuclear fuel, would get a 5 billion euros capital increase, of which the state would provide 4 to 4.5 billion euros, Vial said. The remainder would come from foreign investors. "We are negotiating with third-party investors; Chinese and Japanese, and with a Kazakh company. We are discussing the percentages," Vial said. Vial said APE would need financing of 7-8 billion euros. "That is provided that we get EU commission clearance," he said. Areva said in late 2015 it had signed a memorandum of understanding with China National Nuclear Corporation about taking a minority stake in NewCo. Earlier this month, the government also said Areva was in talks with Kazakhstan uranium mining company Kazatomprom about a potential investment in Areva. Mitsubishi Heavy Industries, <7011.T> which in June struck a deal with EDF to possibly take a minority stake in Areva NP, might also consider one in NewCo. Any delay in the planned rescue could force Areva to call on the state for a shareholder loan to repay a 1.2 billion euro bridging loan expiring in January. Industry experts say this increases the risk Areva's rescue will be delayed till after the May 2017 presidential election. (Reporting by Geert De Clercq; Editing by Mathieu Rosemain and Jane Merriman)