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Hitachi to seal British Nuclear Deal worth $629 Million

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Hitachi Ltd.

Hitachi Ltd.

Reports from the media in Japan suggest that the biggest industrial electronics manufacturer in Japan, Hitachi Ltd., is close to purchasing Horizon, the nuclear new-build project of the British through a deal which is expected to be valued at over $628.46 million or 50 billion yen.

Future Nuclear Plans for Hitachi

British nuclear project Horizon has established plans to set up a nuclear capacity of 6 gigawatts. The project was put up for sale by RWE AG and E.ON AG, the German owners of the company back in the month of March, following the decision of Germany to back out from nuclear power which crashed the finances of the utility.

An anonymous source close to the Hitachi-Horizon nuclear deal revealed that Hitachi Ltd. had made the most lucrative offer and had a greater chance of acquiring British nuclear project Horizon. Another person involved in the Hitachi-Horizon nuclear deal also claimed that Hitachi was likely to come out on top.

According to reports published in both the Kyodo newswire and the Asahi daily newspaper, on the 23rd of October, Hitachi Ltd. was supposed to convene a board meeting in order to approve the Hitachi-Horizon nuclear deal and make an official announcement regarding the same later in the day. The Mainichi Daily newspaper claimed that sources involved with the $629 million Hitachi deal had stated that in addition to creating the nuclear units, Hitachi Ltd. was also likely to secure a contract of more than 40 years to control and maintain the reactors. British nuclear project Horizon and E.ON were not available for comment. A spokesperson for the RWE claimed that they were in the ultimate stages of finalizing the Hitachi-Horizon nuclear deal. He added that more details would be divulged in the future regarding the $629 million Hitachi deal.

RWE stated on the 25th of October that advanced talks were going on regarding the $629 million Hitachi deal, following the report published in a German newspaper which stated that a consortium set up by Hitachi happened to be the front runner for the venture based in the city of Gloucester.

Frontrunners for the Project

Hitachi Ltd. paired with its counterpart in Canada SNC-Lavalin as well as Westinghouse along with its parent corporation Toshiba Corp. have seemingly both offered bids for British nuclear project Horizon.

Areva of France quitted the race to possess Horizon in early October after making an announcement that it was placing the bid along with China Guangdong Nuclear Power Holding.

RWE and E.ON are both the centre of rating firms with debts amounting to almost 34 billion euros and $53.02 billion or 41 billion euros respectively, each shelled out almost 250 million euros for the two nuclear sites of Horizon located at Wylfa on Anglesey and Oldbury close to Bristol.

The two major electricity corporations have been under constant pressure since the year before when Germany announced its decision to put an end to nuclear usage by the year 2022. On the other hand, the government in Britain plans incredible growth in its nuclear industry, not unlike the $629 million Hitachi deal. New stations for power are likely to come online by the year 2025 targeted to substitute blocks, such as the Fukushima nuclear crisis and cheaper projects.

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