Engie Backs Out Of NuGen Stake

Japanese conglomerate Toshiba announced Wednesday that French utility Engie had decided to back out of the Moorside project, selling its 40 percent stake in NuGen to Toshiba for $139 million.

ToshibaEngie held 40 percent of NuGen, which has the contracts to build a 3.8GW nuclear power plant near Sellafield in Cumbria, England.

However, Toshiba's nuclear division, the U.S.-based Westinghouse Electric Company, filed for Chapter 11 bankruptcy protection this week, which allowed Engie to exercise its right to sell its stake, given Toshiba's financial position has materially been altered.

Toshiba has said that it would continue with projects that are already underway, but the company said Wednesday that it was seeking investors to replace Engie. Without financial backing, projects that are not substantially underway are likely to be put on hold or canceled, according to business journals.

Korea Electric Power (KEPCO) has been talking with Toshiba concerning the purchase of Toshiba's 60 percent share of the Moorside project. Those discussions will be influenced by Wednesday's announcement.

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