CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investors may be offered stake in UK nuclear power plant

By Rob Griffin

12:00, 29 September 2021

A nuclear power plant cooling tower
Investors may be offered a stake in a UK nuclear power station – Photo: Shutterstock

Institutional investors could be asked to buy a minority stake in a new £20bn nuclear power station under UK government plans to oust China’s CGN from the project, it was claimed today.

According to the Financial Times, the government is closing in on a deal to force state-owned CGN to give up its 20% stake in the proposed Sizewell C plant in Suffolk.

The report said talks were already under way with EDF, the French energy group that holds the remaining 80% stake in Sizewell.

Capital.com spoke to a representative of EDF, who declined to comment.

Key role to play

The FT report claimed the government would hold CGN’s stake until it could be sold to institutional investors or floated on the stockmarket through an initial public offering.

In a statement, a government spokesperson said nuclear power had a key role to play as we “work to reduce our reliance on fossil fuels” and exposure to volatile global gas prices.

“CGN is a valued partner at Hinkley Point C and a shareholder in Sizewell C up until the point of the government’s Final Investment Decision,” they added. “Negotiations are ongoing and no final decision has been taken.”

The FT had reported in July that the British government was exploring ways to remove CGN from the project as relations have chilled between London and Beijing in recent years.

XRP/USD

0.52 Price
+6.830% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00487

Oil - Crude

69.60 Price
-4.750% 1D Chg, %
Long position overnight fee -0.0155%
Short position overnight fee -0.0064%
Overnight fee time 21:00 (UTC)
Spread 0.03

BTC/USD

27,839.65 Price
+0.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00

Gold

1,959.57 Price
+0.840% 1D Chg, %
Long position overnight fee -0.0183%
Short position overnight fee 0.0101%
Overnight fee time 21:00 (UTC)
Spread 0.30

Intolerable bullying

Sir Iain Duncan Smith, the former Conservative Party leader, suggested the UK government would, if necessary, take over the stake before selling it. He believes it’s the right thing to do.

In an interview on Sky News, he said: “We cannot have things that are so important to us in the hands of a government which, frankly, behaves in an intolerable bullying, and despotic manner.”

Claiming the Chinese government had “spent its whole time” targeting the UK and others for espionage, he added: “I think the whole thing requires us to behave robustly.”

Shelved decisions

Duncan Smith believes institutional investors would be prepared to buy the stake.

He pointed out how successive UK governments had shelved decisions on nuclear energy, resulting in a “whole bunch of power stations” about to close and not enough opening up.

“Anybody who wants to invest their money will see straight away that nuclear now is very much the coming power generator,” he added.

 

Read more: Nuclear plants hit 30-year low

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 530.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading