Recognizing and Resisting Foreign Takeovers in the Energy Sector

Recognizing and Resisting Foreign Takeovers in the Energy Sector - Allied Nuclear

Under Allied Nuclear’s flexible financing approach, the private sector retains a much stronger role than traditional public-private partnerships. The company is committed to working in concert with the host government agencies on an overall financing package with multiple negotiated elements. Negotiated attributes bring a more refined methodology to risk-sharing and cost management. This advantages buyers interested in nuclear energy facilities in numerous ways.

First, it helps to build investor confidence and create investment opportunities attractive to diverse types of investors. It also defines a “capital stack” that offers levels of investment to meet varied needs for risk, reward and timescale. Finally, the approach serves as a counterweight to the “foreign takeover” model promulgated by Chinese and Russian state-owned developers. Energy policy that serves as an extension of a respective government’s foreign policies should be collaborative, not exploitative.

Often, predatory state-owned entities link other provisions with their bids, such as preference for future sites and contracts in other sectors, such as public transit and infrastructure. Such actions do not provide an optimal result for the host country and, instead, entails forfeiture of national sovereignty over the nuclear project and beyond.

If awarded a project, China and Russia’s state-owned nuclear developers favor their own state-owned entities in the selection of vendors and suppliers for building and operating a nuclear power plant. This heavily-subsidized predatory mercantilism comes at the expense of both project safety and security.  It also disadvantages the project’s customers as they bear the cost of inefficient construction by state-owned entities.

In contrast to a foreign takeover model, Allied Nuclear’s best-in-class model brings together the world’s leading nuclear developers and suppliers that are commercially driven. The private sector approach delivers nuclear energy safely and cost-efficiently, without undermining a host country’s regulatory standards, public oversight or national security.

The framework for a U.S.-led coalition of nuclear contributors leverages a global network of services and technologies to ensure nuclear energy technology achieves its full potential in meeting the demands of modern society.

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