Bloomberg News

Vattenfall Won’t Buy EON Finnish Nuclear Share, Hatakka Says

November 07, 2012

Vattenfall AB, Sweden’s biggest utility, isn’t interested in taking over EON AG’s share in Fennovoima Oy, a joint venture that’s building a nuclear reactor in northern Finland, a company official said.

EON, Germany’s biggest utility, is seeking to sell its 34 percent stake in Fennovoima by the first quarter and focus on operations in Sweden and Denmark, it said on Oct. 24.

“Vattenfall recently divested all of its operations in Finland, except for retail power sales and some hydropower production, which answers the question whether we are interested in EON’s share in Fennovoima,” Tuomo Hatakka, head of production at Vattenfall Europe AG, said today at an interview in Helsinki where he was attending a conference.

The only possible candidate to fill the void left by EON is Vattenfall, Ingo Becker, Frankfurt-based head of utilities research at Kepler Capital Markets, said by e-mail Oct. 29. The venture is “highly likely to fail unless Vattenfall jumps in,” Becker said.

Fennovoima is preparing to start construction on the reactor, with a capacity of 1,600 to 1,800 megawatts, at Pyhaejoki, Finland, in late 2016.

To contact the reporter on this story: Torsten Fagerholm in Helsinki at tfagerholm@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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