com:20091102:RnsB6886B
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RNS Number : 6886B  
  
Dept for Business Innovation&Skills  
  
02 November 2009  
  
Reference: 2009/213  
  
Date: 2 November 2009  
  
UK ATOMIC ENERGY AUTHORITY COMPLETES SALE OF ITS COMMERCIAL BUSINESS, UKAEA 
LIMITED  
  
The Government today welcomed the completion of the UK Atomic Energy Authority's 
£50 million sale of 100% of its commercial arm, UKAEA Limited, to Babcock 
International Group.  
  
The sale is the first transaction under the Government's Operational Efficiency 
Programme, launched last year. The Programme aims to ensure more efficient and 
commercial operation of assets held by the public sector, including certain 
businesses. This aspect is being managed by the Shareholder Executive.  
  
The sale completed on 31 October and followed the announcement of 30 March 2009 
that UK Atomic Energy Authority was seeking a buyer for UKAEA Limited. The sale 
of the business will help to reinforce the UK's strong heritage in the nuclear 
industry and provide a platform for the further development of skills in this 
important marketplace.  
  
Business Secretary Lord Mandelson said:  
  
"This is a win, win, win result. It gives UKAEA a strong partner, generates good 
value for the tax payer and allows the Nuclear Decommissioning Authority to 
enjoy a broader array of nuclear decommissioning expertise."  
  
 
Chief Secretary to the Treasury, Liam Byrne said:  
  
"Asset sales like this are an important part of our plans to bring down debt. As 
we lock in the recovery we'll move to halve the deficit over 4 years, so it's 
good to see transactions like this on track, delivering value for British 
taxpayers."  
  
Notes to Editors  
  
1.  The Operational Efficiency Programme ("OEP") was launched in July 2008 and 
led by 5  
senior external advisors. The Programme has been designed to explore whether 
further savings  
could be achieved in 5 related areas:  
  
. Assets  
  
. Back office operations and IT  
  
. Collaborative Procurement  
  
. Property . Local Empowerment and Incentives  
  
It reported at Budget 2009 and made a wide range of recommendations.  
  
2. The asset strand of OEP aims to ensure more efficient and commercial 
operation of assets held by the public sector, including certain businesses. The 
Shareholder Executive (http://www.shareholderexecutive.gov.uk) works with their 
Boards, employees and advisors to achieve these objectives, which in certain 
circumstances may lead to disposals.  
  
3. UKAEA Limited provides nuclear decommissioning, waste management and site 
environmental remediation services in the UK and overseas. It also manages the 
pension administration for a number of nuclear industry pension schemes. UKAEA 
Limited, as part of UK Atomic Energy Authority, has been an established part of 
the UK nuclear industry over the last fifty years. UKAEA Limited offers site 
management services at three Nuclear Decommissioning Authority sites and nuclear 
project management and consultancy services in the UK and international 
markets.  
  
4. UKAEA Limited's parent, the UK Atomic Energy Authority, continues to 
encompass fusion research for the UK; is one of the joint venture partners in 
the Harwell Science and Innovation Campus; provides IT and Telecommunications 
services to the group and is responsible for corporate governance. It is a 
Non-Departmental Public Body responsible to the UK Department for Business, 
Innovation and Skills.  
  
5. Babcock is a major supplier of nuclear engineering and support services in 
the UK. It provides engineering skills and services across a range of sectors 
and operates extensively in the UK, as well as in Africa, Canada and Australia.  
  
6. The purchase consideration includes net cash balances of £11.6m. 
  
  
Department for Business, Innovation & Skills  
  
The Department for Business, Innovation and Skills (BIS) is building a dynamic 
and competitive UK economy by: creating the conditions for business success; 
promoting innovation, enterprise and science; and giving everyone the skills and 
opportunities to succeed. To achieve this it will foster world-class 
universities and promote an open global economy. BIS - Investing in our future.  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
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