Germany's two largest utilities, E.ON AG (EOAN.XE) and RWE AG (RWE.XE), said Wednesday they intend to jointly set up a company that will seek to build new nuclear power plants in the U.K.

"The joint venture will aim to develop at least 6 gigawatts of (nuclear energy) capacity in the U.K.," the companies said in a written statement.

Their U.K. market units, E.ON U.K. and RWE npower, will form a 50-50 joint venture that "will have a long-term focus on seeking to secure sites being sold by the Nuclear Decommissioning Agency."

Both E.ON and RWE have repeatedly expressed their interest in participating in the revival of nuclear energy generation in the U.K.

RWE was understood to have been eyeing U.K. nuclear power plant operator British Energy Group PLC (BGY.LN), although the German utility never officially confirmed its interest.

British Energy last year was eventually taken over by French energy firm Electricite de France (1024251.FR) for GBP12.5 billion.

Both E.ON and RWE have already been actively buying land in the U.K. for possible greenfield nuclear projects.

E.ON has acquired several tracts of privately owned land around an existing nuclear site at Oldbury-on-Severn, north of Bristol, which is an NDA site.

RWE npower last month said it had secured a grid connection and land for a new nuclear power station at Wylfa in Anglesey, Wales.

E.ON and RWE Wednesday said their joint venture "retains an open position on the reactor technology" it may use for individual sites.

E.ON spokesman Christian Drepper added the investment volume for the development of nuclear power plants in the U.K. will depend on the types of land the joint venture will acquire and the reactor technology that will be used.

Company Web site: www.eon.com; www.rwe.com

-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503; jan.hromadko@dowjones.com

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