Talks have been discontinued for Hong Kong electricity producer CLP Holdings Ltd. to buy a 4.8 billion yuan ($784 million) stake in a Chinese power plant following regulatory delays after Japan’s nuclear crisis.
Shareholder China General Nuclear Power Corp. told CLP this week that the deal wouldn’t go ahead “for the time being,” CLP said in a Hong Kong stock exchange filing yesterday. CLP agreed in 2011 to buy the 17 percent stake in the Yangjiang Nuclear Power Station in southern China’s Guangdong province.
“Discussions on Yangjiang have been discontinued,” CLP said in yesterday’s statement. “There is no assurance that discussions will recommence or, if they do, that CLP will then be able to reach agreement.”
The announcement upsets CLP’s plans to increase spending on nuclear power even after the Fukushima Dai-Ichi nuclear crisis prompted China to halt approval of new projects. Construction of the 6,000-megawatt Yangjiang plant, which was due to start operating in phases from 2013 to 2017, was delayed as the nation reviewed nuclear safety.
China General Nuclear Power said CLP wouldn’t be able to take up the stake following the delays as well as a review of “funding needs and capital raising options,” according to the CLP statement.