MidEast investors eye UK nuclear venture Horizon

Interest highlights renewed investor appetite for Europe's nuclear industry
MidEast investors eye UK nuclear venture Horizon
(Image for illustrative purposes only)
By Reuters
Fri 04 May 2012 07:22 PM

Five groups, including Chinese, U.S. and Middle Eastern investors, are interested in buying E.ON and RWE's UK nuclear joint venture Horizon, a senior industry source said, highlighting a renewed international investor appetite for Europe's nuclear industry.

"There are five groups interested overall. The preferred bidder will be the one who can take the site and build on it as fast as possible," said the source, who has direct knowledge of the deals but who asked not to be identified.

RWE and E.ON, under pressure from their home country's move to phase out nuclear power, announced in March the sale of Horizon, which had planned to invest 15 billion pounds to build at least 6 gigawatts (GW) of new nuclear plants at two sites in Oldbury and Wylfa in Britain.

Parties interested in purchasing the venture include U.S.-based Westinghouse, owned by Japan's Toshiba, a Chinese investor, U.S. power company Exelon and Middle Eastern investors, the source said without giving further details.

RWE, E.ON and Horizon refused to comment on the sales process.

Russian nuclear investors and the NuGen UK nuclear joint venture set up by Spain's Iberdrola and France's GDF Suez were not part of those interested at the moment, the source said, but NuGen could still come forward with a proposal.

A deal is unlikely to emerge before the summer as the foreign investors will need time to familiarise themselves with the UK market.

"It will take the summer to get the deal done just because all the people coming in have not been in the UK before," the source said.

Britain is in the process of reforming its electricity market to establish a system which will reward producers of low-carbon energy, including nuclear power.

Reform proposals are expected to be presented to parliament before the summer.

Staff at Horizon based in Gloucester continue working on the project whilst waiting for an investor to come forward.

"We are continuing with our activities vital to maintaining value in the project and supporting our shareholders," a Horizon spokesman said.

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