A memorandum of understanding between Italy’s ENEL and Electricité de France (EdF) has brought to and end the long-running impasse between the two.

The move will also see the Italian government lifting its 2% voting ceiling on EdF’s stake in the country’s second largest utility company Edison.

As part of the deal, Enel will become the first official partner in the planned European Pressurised water Reactor (EPR) advanced reactor at Flamanville-3 with a 12.5% stake in the 1,700 MWe project. Enel is also likely to participate in five further EPR units.

The Flamanville-3 project will also involve other partners with whom negotiations are less advanced and EdF is understood to have reserved a 37.5% stake in the project for three other partners while keeping at least 50% for itself. Other European utilities expressing an interest in the EPR include Suez, Endesa and French electricity trader Poweo.

EdF owns 18% of Italenergia, the holding company that controls 62% of Edison, along with a direct 2.34% interest in Edison, and is now expected to make further investments in Italy with the Milan utility AEM to buy out Edison.

The deal requires regulatory approval from the European Union.