New Brunswick throws a wrench into AECL sale plans

[CHIMO]

New Brunswick has cast a pall over Ottawa’s effort to sell off Atomic Energy of Canada Ltd., announcing that it has dropped AECL’s proposal to build a new reactor and is turning instead to the Crown corporation’s arch-rival, France’s Areva Group.

The New Brunswick decision, made public on Thursday, is the second major setback for AECL in the past year. Last summer, the Ontario government postponed indefinitely the purchase of the corporation’s next-generation Candu reactor, which is still in development.

The Harper government is trying to sell AECL, and the bidding process, managed by New York merchant bank N.M. Rothschild & Sons closed on June 30. Industry insiders say there were multiple bidders, including Montreal-based engineering giant SNC-Lavalin Group Inc. and Westinghouse Electric Co. LLC, a unit of Toshiba Corp.

Areva had indicated during the Ontario competition that it would consider seeking a stake in Canada’s flagship nuclear company, but its interest has cooled, and sources said on Thursday that the French multinational has dropped out.

http://www.theglobeandmail.com/news/national/atlantic/new-brunswick-throws-a-wrench-into-aecl-sale-plans/article1633588/