Afternoon:
10°c
The great Labour sell-off of remaining state assets kicked off today with the disposal of the UK Atomic Energy Authority.
Despite its grand-sounding name, the UKAEA is just a small part of the British nuclear scene. It has been sold to Babcock International for just £50 million, of which £12 million is its cash balances.
What the UKAEA does have, however, is current nuclear decommissioning contracts at Dounreay, Harwell and Winfrith; it gives its new owner an entrée into the £70 billion atomic clean-up business in the UK; and, just as importantly, it has engineers who know what they are doing.
The deal sees Babcock, best-known for running the royal naval dockyards at Devonport and Rosyth, significantly extending its interests in the nuclear industry.
Babcock chief executive Peter Rogers said: "The high level of skills and expertise in UKAEA will further accelerate the growth of our nuclear business." He said the deal will give Babcock tier one accreditation with the Nuclear Decommissioning Authority, which is overseeing civil nuclear clean-up to go alongside its existing tier one military nuclear clearance.
It is believed Babcock beat off bidders including Amec, Serco and VT.
Announcing the deal, business secretary Lord Mandelson said the sale was good value for the taxpayer.
