A cross-border King & Wood Mallesons team has successfully assisted China General Nuclear (CGN) in obtaining EU merger clearance for its nuclear joint venture with French energy company EDF.

The joint venture plans to construct and operate the first new-build nuclear power stations in the UK for a generation at Hinkley C in Somerset.

CGN, a major Chinese state-owned enterprise, is the largest and most experienced nuclear power reactor operator in China. In line with China’s 'Go Global’ strategy, CGN plans to develop and become a majority shareholder in the future UK Bradwell B nuclear plant, whilst expanding its global footprint.

The European Commission gave the green light for the joint venture by announcing its unconditional phase 1 clearance decision today (10 March 2016). The clearance follows the Strategic Investment Agreement signed in London in front of UK Prime Minister David Cameron and visiting Chinese President Xi Jinping in October last year. Hinkley C alone is anticipated to supply around 7% of the UK’s electricity needs.

Simon Holmes, head of King & Wood Mallesons’ EU, Competition & Regulatory team in Europe, said: "This has been a complex and challenging clearance process, which has leveraged our cross-border capabilities and deep understanding of Chinese and European regulatory structures. We are delighted that we have persuaded the Commission to approve this joint venture, which will bring significant economic benefits to both China and the UK.”

Pan Yujia, Corporate partner at King & Wood Mallesons in Shenzen, said: “Supporting CGN in delivering its international strategy is a further example of the way we have leveraged the depth of our local expertise on a global platform. With an unrivalled understanding of Chinese, UK and European markets, we are able to offer a real difference in transaction management and client experience.”

As Chinese and European legal counsel, King & Wood Mallesons’ London and China offices (particularly Beijing and Shenzen) are advising CGN on many aspects of the transaction, including corporate structure, nuclear regulatory matters, intellectual property, real estate, EU and Chinese merger control and EU State aid.

The cross-border team is led by European-based partners Ian Wood and Simon Holmes; together with China-based partners Pan Yujia, Xu Ping, Handel Lee, Wu Shujun, Yao Lijuan and Liu Cheng; and London based partners Andrew Shindler, Gretchen Scott, John Danahy, Angus Evers, Joseph Newitt and Heather Corben.