Brookfield to Acquire 20% Stake in Sizewell C Nuclear Project in UK

Brookfield Asset Management is set to acquire a 20% stake in the UK's Sizewell C nuclear project, making it the largest private investor. EDF will cut its stake, with terms close to being finalized with the British government. Brookfield's investment will support the development of the project, which aims to create a new nuclear power station in Suffolk.

Brookfield Asset Management (NYSE: BAM) is set to become the largest private investor in the UK's Sizewell C nuclear project, according to terms close to being finalized with the British government. The U.K. government is seeking to reach a final investment decision later this summer, with Brookfield poised to own a more than 20% interest, making it the largest shareholder after the government, which is expected to retain majority control [1].

EDF, the original project sponsor, is set to reduce its stake to 12.5%, according to the report [1]. This reduction comes as EDF is under pressure to slash its exposure to foreign projects, particularly in light of cost and schedule overruns at the Hinkley Point C plant in Somerset [2]. The company's share of Sizewell C has already been reduced passively by the UK Government's decision to pump further billions into preparatory work on-site [2].

Other investors, including British Gas owner Centrica, are also expected to participate in the project. Centrica is reportedly set to take a 15% stake, with potential investors including Amber Infrastructure Partners, Brookfield Asset Management, and the Canadian pension fund CDPQ [2].

The Sizewell C project aims to create a new nuclear power station in Suffolk, with a final cost estimated to approach £40 billion (~$54.35 billion) [1]. The project is part of the UK Government's commitment to invest a further £14 billion in the scheme, which is expected to bring lower energy bills, thousands of jobs, and better energy security to the British people [2].

Brookfield's investment in Sizewell C is a significant move for the company, as it supports the development of a major infrastructure project in the UK. The project is expected to generate enough electricity to power about 6 million homes [2].

References:
[1] https://seekingalpha.com/news/4465992-brookfield-set-to-take-20-percent-stake-in-u-k-sizewell-c-nuclear-project-ft
[2] https://finance.yahoo.com/news/france-edf-cut-stake-sizewell-130529235.html