Nukem Technologies acquisition agreement announced

09 July 2024

Japan's Muroosystems Corp has signed an acquisition agreement for Nukem Technologies Engineering Services, which specialises in decommissioning, waste management and engineering services.

(Image: Nukem)

The Germany-based company was bought by Russia's Atomstroyexport in 2009 for a reported EUR23.5 million (USD25.5 million). The proposed terms of the current acquisition contract, which was signed on 29 May, has not been disclosed.

Nukem said that the decision to sell was taken in 2022 "in view of the difficult geopolitical situation and the challenges involved in continuing the company under a Russian owner. Since then, intensive negotiations have been held with potential buyers who recognised the enormous potential of Nukem, both in terms of its products and its highly qualified team".

In a statement posted on its website, Nukem said the takeover by a Japanese investor "marked a new beginning" and gives it "the opportunity to return to the markets that were no longer accessible due to the previous ownership structure". It added that as part of the process "all necessary approvals for the transaction will be obtained and obligations to third parties will be diligently fulfilled".

In quotes

Thomas Seipolt, managing director of Nukem, said: "We are delighted to have found a partner in the new owner who not only wants to continue Nukem's established business, but also to expand it - both in terms of new markets and new technologies such as nuclear fusion. We are confident that we can shape a successful future together and would like to thank our customers and partners for their trust."

Nobuaki Ninomiya, executive director at Muroosystems, said: "The completion of this capital transaction is scheduled for mid-August this year, and Muroosystems Corp is excited to embark on this new journey with Nukem. We anticipate that the fusion of German and Japanese professionalism will create new synergies in the nuclear decommissioning and nuclear markets across Europe, Japan and other Asian countries."

The background

Nukem was founded in Germany in 1960, originally with the goal of designing and manufacturing nuclear fuel elements. Political and policy changes over the years led to a broader direction and in 2006 its business activities in the field of decommissioning, management of radioactive waste and engineering technology were concentrated in the Nukem Technologies subsidiary. This was bought by Russia's Atomstroyexport in 2009 and transferred in 2019 to TVEL, which is the fuel division of Russia's state nuclear corporation Rosatom. Its projects in recent years have included Lithuania's Solid Waste Retrieval Facility and its Solid Radioactive Waste Management and Storage Facility.

In April it filed for insolvency under self-administration and was under creditor protection, saying the challenges the company was facing were "attributable to the deteriorating business environment due to the ownership structure following the outbreak of war in Ukraine in February 2022" and said at that time that efforts at a sale could not be finalised "mainly due to legal uncertainties related to the Russian ownership and the permissibility of such an acquisition".

Muroosystems is based in Tokyo and was established in 2006. According to the press statement announcing the acquisition "It focuses on IT solutions centred around decentralised data centres and engages in power development projects primarily based on renewable energy".

Researched and written by World Nuclear News