Named State Power Investment, the new company is expected to generate revenues of over CNY200bn ($32.8bn) and own around CNY700bn ($112.94bn) assets, reported Reuters citing state news agency Xinhua.
The merger, which has been approved by China’s cabinet, will combine the technology and operational capabilities of CPIC and SNPTC.
State Grid Energy Research Institute analyst Li Ying was quoted by Global Times as saying that the new company will undertake the operations of the AP1000 nuclear reactor units that are planned to be installed in Zhejiang province, China.
As part of the deal, the two firms will also integrate complementary resources and expand market shares, to gain competitive advantages.
Ying said: "CPIC will help SNPTC get the required licenses to operate nuclear plants while SNPTC provides R&D."
China National Nuclear Power (CNNC) said that the merger of CPIC and SNPTC will create tough competition between three major nuclear firms in the country.
CNNC and China General Nuclear Power are reportedly considering a merger. The companies work together on Hualong 1 nuclear reactor brand.
Image: China Power Investment and State Nuclear Power Technology merger deal to boost china’s nuclear industry. Photo: courtesy of xedos4 / FreeDigitalPhotos.net.
