Private equity firms eye nuclear fuel maker Urenco

SOME of the biggest names in private equity are thought to be circling nuclear fuel maker Urenco, in a move that could spark political repercussions.

Chancellor George Osborne has hired investment bank Morgan Stanley to sell the UK government’s stake in Urenco, which was formed in 1971 with the Dutch and German government.

Britain’s stake could be worth up to £3 billion, valuing Urenco at about £10bn. German utility firms E.ON and RWE have already put their holdings up for sale following the German government’s decision to close its nuclear power plants following the accident at Fukushima.

Private equity giants Apax, Carlyle, CVC and KKR have all been tipped as possible bidders for the stakes in Urenco, which enriches uranium for nuclear power plants and atomic weapons.

But a sale to private equity firms could lead to political questions over the UK’s reliance on foreign sources for its energy needs. French engineering firm Areva has also been touted as a bidder.