Westinghouse Said Close to Agreement to Buy 50% Stake in NuGen

Westinghouse Electric, the atomic-reactor maker owned by Toshiba Corp. (6502), is close to an agreement to buy 50 percent of British nuclear venture NuGeneration Ltd., according to a person familiar with the matter.

The purchase from Spanish utility Iberdrola SA (IBE) would be for more than 100 million pounds ($163 million), the person said, asking to not be identified before a public announcement. Tokyo-based Toshiba said in October it was seeking a stake in the company known as NuGen, which plans to develop a nuclear plant at Moorside in northwest England. 

NuGen, jointly owned by GDF Suez (GSZ) SA and Iberdrola SA, is deciding between two reactor designs, including the AP1000 unit built by Westinghouse. Toshiba, which also produces flash-memory chips and other power generators, is benefiting from demand for hydropower, wind and gas-fired stations in the aftermath of Japan’s Fukushima nuclear accident in 2011.

Atsuko Miyashita, a spokeswoman for Toshiba, declined to comment. Keith Grant, a spokesman for Iberdrola, declined to comment in an e-mail.

Westinghouse will announce a deal “within days,” the Financial Times reported, citing unidentified people familiar with the matter.

To contact the reporter on this story: Takashi Amano in Tokyo at tamano6@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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