nuclear-news

Jacobs’ nuclear spin-off raises alarm in Whitehall

 Whitehall officials have raised concerns about the spin-off of a £3
billion business that services vital parts of Britain’s nuclear and
defence infrastructure. The Cabinet Office is understood to have met the
chief executive of US engineering giant Jacobs, which in March announced
its intention to separate its “critical missions solutions” (CMS)
business. This operation is helping to build the Hinkley Point C reactor in
Somerset. It also manages waste and decommissioning at the Sellafield
nuclear site and has overseen projects at AWE Aldermaston, a nuclear
weapons base.

Gareth Rhys Williams, chief commercial officer of the Cabinet
Office, met Jacobs boss Bob Pragada last month to seek assurances that the
spin-off would not affect the delivery of its government contracts.

Jacobs decided to spin off its multinational CMS business to concentrate on more
lucrative consulting work. It is unclear whether this will take the form of
a stock market float, or even a sale. McKinsey is believed to be one of the
advisers leading the spin-off.

Industry sources suggested the separation of
CMS could have implications for national security, given the sensitive
nature of its contracts, especially if it were snapped up by a foreign
buyer. Separately, energy secretary Grant Shapps will this week deliver an
update on Great British Nuclear, which is running a competition to pick
developers of small modular reactors. It is expected to outline a
twin-track approach to projects, with a first wave of more traditional
designs to be followed by “advanced” modular reactors.

 Times 9th July 2023

https://www.thetimes.co.uk/article/jacobs-nuclear-spin-off-raises-alarm-in-whitehall-d9vn7r3jv

July 11, 2023 - Posted by Christina Macpherson | Uncategorized