GMO Global - Hitachi Buys Horizon Nuclear Power.

GMO Global - Hitachi is to acquired the Horizon Nuclear project from RWE and E.ON for $1.1 billion.

Los Angeles (I-Newswire) November 21, 2012 - GMO Global reportedly announced in a recent meeting that Hitachi Ltd of Japan intend to build up to six new nuclear reactors at two sites in Britain, Wylfa in Angelsea and Oldbury in Gloucestershire. They intend to use the yet unlicensed in the UK, boiling water reactor technology for the new plants, which are expected to go online in the early 2020’s.

Hitachi, who currently only earn around 2% of their revenues from their nuclear unit, have stated their goal to more than double that revenue within ten years. Hitachi has moved away from the low margin consumer electronics arm that had been its core business and begun to focus more on global infrastructural projects.

GMO Global allegedly commented that the acquisition could help provide Hitachi with an important boost to their nuclear business, which had stalled due to the Fukishima disaster. There are plans for the phasing out of nuclear power in Japan, with a possible aim of being nuclear free by 2040.

Uk parliament are due to discuss a new energy bill which is expected to reduce investment risk for renewable and nuclear groups by guaranteeing returns. The bill will ensure energy security by providing investors like Hitachi with the certainty they need, and to get the best deal for the consumer according to UK Energy Minister john Hayes.

GMO Global is believed to have notified investors about a public statement from the Department of Energy and Climate Change in the UK. Apparently the statement related to the six nuclear plants and that once completed could provide enough electricity for 14 million homes for over 60 years.