By BRIAN SPEGELE
Feb. 3, 2015 11:51 p.m. ET
BEIJING—China’s government will merge a leading nuclear-technology company with one of the nation’s biggest power producers, as the government looks to consolidate its burgeoning nuclear sector.
China Power Investment Corp., one of China’s top electricity producers, is moving ahead with restructuring plans to merge with State Nuclear Power Technology Corp., according to a filing late Tuesday by publicly traded CPI subsidiary Shanghai Electric Power Corp.
Shanghai Electric said it made the statement in response to a request for clarification from the stock exchange following volatility in its stock. Its shares were up more than 8% at 12.69 yuan ($2.03) in late-morning trading on Wednesday.
SNPTC has emerged as one of the most influential players in China’s nuclear industry in recent years. The company is building four AP1000 reactor units in China, following a 2007 deal with Westinghouse Electric Co. to bring the company’s latest reactor to China. As part of that deal, Westinghouse agreed to transfer key AP1000 technologies to SNPTC, which is now working to design and build its own reactors, called CAP 1400, based on the Westinghouse model.