Mitsui Babcock, the UK-based energy services company, is to be sold to South Korea’s Doosan Heavy Industries, for ¥20 billion ($174 million).
Completion of the deal is expected by January 2007, upon which Mitsui Babcock will be known as Doosan Babcock.
Yasu Katoh, chief executive of Mitsui Babcock said: “There are truly exciting times ahead for Doosan Babcock as part of a group that has the scale and ambition to become one of the major international players in the power plant field.”
Meanwhile, Mitsui Babcock has been awarded a contract to provide long-term support to ScottishPower at their 2,400 MW Longannet and 1,200 MW Cockenzie power stations.
The contract, worth approximately £100 million ($185 million), is initially due to run for 10 years for Longannet and 5 years for Cockenzie, with the opportunity for extension of the contract to run to the end of the remaining life of both stations.
The contract covers the provision of term and outage maintenance services.