• Court cancels injunction won by rival bidder EDF
• EDU II and KHNP sign nuclear reactor deal, PM says
• Deal is the largest Czech procurement deal ever

PRAGUE, June 4 (Reuters) - The Czech state-controlled company EDU II and South Korea's KHNP signed final contracts to build two new nuclear power reactors on Wednesday, Prime Minister Petra Fiala said, after a court lifted an injunction barring the deal's closing.

A Czech court gave the green light on Wednesday to the $18 billion deal to build two new nuclear power reactors, cancelling an injunction threatening to derail the transaction.

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The Supreme Administrative Court's decision, announced on Wednesday, meant the biggest Czech procurement deal ever, and a key part of the country's drive to replace ageing coal and nuclear units, could be signed.

France's EDF had challenged the tender and won the injunction from a lower court last month, derailing the signing of the contract that was planned for May 7, with a ceremony prepared and a Korean delegation already en route to Prague.

However, the state-controlled company EDU II building the plant and KHNP appealed that ruling.

The court said on Wednesday it heeded those complaints and found the injunction issued by a lower court illegal and unverifiable.

"By cancelling the preliminary injunction with today's judgment, the court lifted the ban on concluding a contract for the fulfillment of a public contract for the construction of a new nuclear power plant in the Dukovany location," the court said.

The injunction was a major obstacle threatening the project's timeline amid possibly lengthy court battles and the looming expiration of KHNP's bid.

KHNP said in a statement that Wednesday's decision "clears the way for the timely advancement of this strategically important project."

Last year, power firm CEZ (CEZP.PR) , opens new tab picked KHNP to build two 1,000-megawatt units to expand its Dukovany nuclear plant, giving KHNP its first project in Europe. EDF has sought to overturn the decision on multiple fronts.

The government, which will provide loans and a pricing scheme to make the project profitable, took an 80% stake in the EDU II firm running the project from CEZ in April, with CEZ retaining 20%.

CEZ and EDF had no immediate comment on Wednesday's ruling.

The lower court which issued the injunction will hold a hearing on the matter of EDF's complaint against the tender itself on June 25.

Separately, EDF, the only European company building nuclear plants, sought to cancel KHNP's win through the European Commission on competition grounds, suggesting KHNP's offer was so low that it implied state aid. KHNP has denied any state aid.

The Czechs also need to get new EU approval for state loans and an electricity price mechanism for the plant after they expanded the project last year from one reactor - which won EU clearance - to two.

https://www.reuters.com/business/energy/czech-court-rules-18-bln-nuclear-power-plant-deal-with-khnp-can-go-ahead-2025-06-04/