AECL’s CANDU reactor division sold to SNC-Lavalin

The Canadian government has agreed to sell the CANDU Reactor Division of AECL (Atomic Energy of Canada Limited) to engineering and construction firm SNC-Lavalin.

SNC-Lavalin will pay C$15.5m ($16.1m) plus royalty payments from the construction of new reactors and reactor refurbishment projects.

Sale negotiations had begun in 2009 when a government report recommended selling AECL’s commercial arm.

SNC-Lavalin will focus on servicing the 34 CANDU reactors in seven countries.

Ontario wants to buy two CANDU reactors for its Darlington plant. Brad Duguid, Ontario’s energy minister, expressed concern that the delay in finding a buyer for AECL had negatively impact this order.

He said: “Our hope is that the sale of the company would bring some stability to the situation.”

Duguid also said he expects the federal government to help pay for the CANDU reactors, as it did when it provided assistance for Newfoundland’s Churchill Falls hydropower station and Alberta’s oil and natural gas projects.

For more Mergers & Acquisitions news click here.

No posts to display