Toshiba has decided to liquidate NuGen, its nuclear power corporation in Britain, to accelerate the pace of its restructuring drive. Korea Electric Power Corp. (KEPCO) planned to enter the British nuclear power market by acquiring NuGen, but this plan is likely to go awry.
Toshiba announced the liquidation plan on Nov. 8. Earlier, the company set up a plan to shut down its overseas nuclear power plant construction business and talked with KEPCO, Canadian Brookfield Asset Management and China General Nuclear Power Group to sell off its stake in NuGen. However, the negotiations showed little progress and Toshiba decided to liquidate the corporation instead of selling it.
KEPCO planned to enter the British nuclear power market by taking over NuGen, which runs the Moorside Nuclear Power Station, instead of obtaining a license from the British government. However, the license for the power station is likely to be returned to the British government if Toshiba liquidates NuGen.
According to some industry sources, the British government is likely to sell the license again by tender, and then KEPCO may have a slimmer chance to win it as more competitors will participate in the bidding. Yet other experts say it is the KEPCO that has the inside track as it has continued to show interest in the Moorside Nuclear Power Station.