China looking to buy a majority stake in British nuclear power plants

China General Nuclear Power Group (CGN) is rumored to be interested in purchasing a majority stake in eight nuclear power plants in Britain, a deal that could be valued at around £4 billion (HK$41.71 billion). The Chinese state-run company may acquire up to 49% share in the eight nuclear plants owned by Centrica, sources suggested.

For the record, the eight nuclear power stations were earlier congregated under the banner of British Energy and were bought by the French company EDF in 2008 for £12.5 billion. In 2009 Centrica acquired a 20% stake in the stations which it estimates is worth £1.7 billion at present. The power stations, run by EDF’s subsidiary EDF Energy, are reported to generated 8.9 gigawatts of electricity to meet about 20% of Britain’s electricity demands.

Reports specify that Centrica had put up for sale its entire 20% stake in the nuclear power stations earlier in the year. With sources speculating that CGN will aim to procure a 49% stake in the power stations, EDF could be looking to raise some capital by shedding off some of its shares as well. Further sources mentioned that CGN will not be given any control over the operations of the power plants even after a deal is agreed and signed upon, indicating that EDF Energy will continue to run them.

Representatives of Centrica, EDF and CGN refused to give any statements on the issue.

According to previous records, CGN is working with EDF Energy on the development of a nuclear power station at Bradwell-on-Sea in Essex, signifying the presence of the Chinese firm in U.K.’s atomic energy domain.

As the Chinese government appears to be emerging as a multibillion-pound shareholder in Britain’s nuclear power industry, the deal will boost its plans of developing nuclear plants. Referring to a statement made in 2016 by a reputed source at China's State Nuclear Power Technology Corporation, the country aims to build around 30 nuclear reactors in the coming five years with more reactors in pipeline for the five years after that.