Under the terms of the deal, CGN Power will acquire 61% equity interest in Fangchenggang nuclear power station, which is currently under construction in Fangchenggang, within the Guangxi Zhuang Autonomous Region.
The deal is subject to approval by independent shareholders.
The Fangchenggang project, which is being built in phases, will have a combined generation capacity of 6GW.
CGN Power will also acquire 100% interest in Lufeng Nuclear and 100% interest in CGN Engineering, a project construction management firm.
The Lufeng is a 2.5GW nuclear power plant which is undergoing preparatory work in Lufeng, Guangdong province, upon securing government approval, reported South China Morning Post.
CGN Power said in a filing with the Hong Kong Stock Exchange that it operates as the sole nuclear power generator within the parent’s group of companies. It also has the right to acquire any assets from its parent that have the potential to be in competition with its businesses.
By 2020, China intends to nearly double its installed nuclear power capacity to 58GW in order to reduce reliance on coal, Bloomberg reported.
In July 2016, China General Nuclear Power commissioned the second reactor at the Fangchenggang, increasing the project’s capacity to 2.1GW.
