By Inti Landauro

PARIS--French businessman Philippe Varin said Friday he is likely to take over as chairman of state-controlled nuclear engineering company Areva SA (AREVA.FR).

Mr. Varin, who was chief executive of car maker Peugeot SA (UG.FR) until last year, said he will probably take the chairmanship at Areva as part of the governance change following the departure of chairman and chief executive Luc Oursel last month for health reasons.

Mr. Varin was speaking during the shareholders' assembly of state-controlled utility Electricite de France (EDF.FR) during which he was elected as a board member.

As chairman of Areva, one of EDF's main suppliers, Mr. Varin said he will work with Jean-Bernard Levy, who is due to take over as chairman and chief executive of the utility, to further develop common projects.

Mr. Varin will work with interim CEO Philippe Knoche to turn around the company which was heavily hit by the aftermath of the 2011 Fukushima disaster in Japan that pushed utilities around the world to shelve nuclear reactor projects.

This week, Areva's management said it is working on a new plan to boost profitability.

Write to Inti Landauro at inti.landauro@wsj.com

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