Hitachi scrambles to divest UK nuclear risks after Toshiba fiasco. Hitachi will curtail its financial risk in the construction of two nuclear power plants in the U.K. by divesting itself of the local subsidiary that will build and operate them, the Japanese conglomerate announced Thursday. The news came at an event held here to draw partners to invest in Horizon Nuclear Power, which Hitachi acquired in 2012 as a wholly owned subsidiary. If Hitachi fails to do so before construction starts in 2019, forcing it to bear practically all the financial risk of the project, it will suspend its plans for the 2 trillion yen ($18.1 billion) project. Hitachi is proceeding cautiously with its own nuclear energy business studying Toshiba’s troubles in the U.S. with Westinghouse Electric. Hitachi now is appealing to energy companies and others to invest in Horizon so it can turn the company into an unconsolidated subsidiary and is prepared to reduce its stake to as low as zero. Operation of the power plants would be entrusted to Horizon.
Nikkei Asian Review 9th June 2017 read more »