Toshiba to Build Three Reactors in U.K. After NuGen Deal

Toshiba Corp. (6502) agreed to buy 60 percent of NuGeneration Ltd., the British nuclear venture that plans to build three atomic reactors.

The purchase from Iberdrola SA (IBE) and GDF Suez SA totals about 100 million pounds ($164 million), the Japanese company said in a statement today. Tokyo-based Toshiba gained 4.6 percent to 483 yen in Tokyo trading, the biggest one-day gain since June 10. The Nikkei 225 Stock Average rose 2.5 percent.

As part of the agreement, Westinghouse Electric, Toshiba’s nuclear reactor arm, will provide three of its AP1000 reactors for NuGen’s Moorside site in the northwest of England, according to the statement. The deal is subject to regulatory approval and won’t have an impact on Toshiba’s full-year earnings forecasts, the company said.

GDF Suez will continue to help NuGen operate the three power plants, which will have a combined capacity of about 3.4 gigawatts, according to the statement.

Toshiba, which also produces flash-memory chips, said in October that it was seeking a stake in NuGen.

Electricite de France SA, with Areva SA and two Chinese nuclear companies, agreed in October to build the U.K.’s first new nuclear plant in two decades. The project will cost about 16 billion pounds and take 10 years to build.

EDF’s move, along with Toshiba’s plans for NuGen’s Moorside site, coincide with a push by U.K. Prime Minister David Cameron to lure 110 billion pounds of investment into Britain’s aging electricity infrastructure by the end of the decade.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net

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

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