Enel and ArcelorMittal Abandon Romanian Nuclear Project

Italy's utility Enel and steelmaker ArcelorMittal are selling their entire stakes in Romania's long-delayed project to expand its nuclear plant in Cernavoda, leaving the state-run power company as the sole shareholder, news agency Mediafax reported.

Nuclearelectrica said Monday it will move on with the EnergoNuclear project and is in talks to attract a majority shareholder.

Enel and ArcelorMittal own 9.15% and 6.2% respectively of EnergoNuclear. Nuclearelectrica is legally required to buy the stakes, at 80% of face value, within 30 days after receiving notice of the investors' intent to withdraw.

Four other investors have already pulled out of the EUR6 billion project to build two new reactors at Cernavoda, citing economic and market uncertainties.

The state ultimately plans to cut its own stake in EnergoNuclear to around 40% and is seeking new investors, possibly from China.

Cernavoda currently operates two 700 megawatt reactors, supplying about 18% of Romania's electricity. The two new reactors, originally due to start operation in 2010, are expected to double the plant's capacity.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires